Canara HSBC Life Q1 Profit Rises 20% YoY to ₹28.1 Cr as Premium Income Jumps

Canara HSBC Life Insurance Company reported a 20.3% year-on-year (YoY) increase in net profit to ₹28.1 crore for the first quarter of FY27, supported by strong premium growth and higher contribution from its protection business.

According to the company's quarterly earnings announcement, net premium earned rose 23.8% YoY to ₹2,047.5 crore from ₹1,653.4 crore in the year-ago period, while total premium income increased 23.7% to ₹2,161 crore.

The insurer said its performance during the June quarter was driven by growth in new business, an improving product mix and continued expansion of its distribution network.

New Business, Protection Segment Drive Growth

New business premium income rose 25.2% YoY to ₹1,044 crore, while Individual Weighted Premium Income (WPI) increased 17.8% to ₹470 crore.

The company's Annualised Premium Equivalent (APE) grew 18.8% YoY to ₹585 crore, in line with its guidance. Value of New Business (VNB) rose 28.8% to ₹124 crore, while the new business margin stood at 21.1%.

The protection business remained one of the fastest-growing segments, with protection APE rising 41.5% YoY. Its share in the overall APE increased to 13%, while Credit Life business recorded 40.7% growth during the quarter.

Commenting on the performance, Anuj Mathur, Managing Director (MD) and Chief Executive Officer (CEO) of Canara HSBC Life Insurance, said, "Our focus on profitable growth continued to deliver results in Q1, supported by a strong distribution network and product mix improvements."

He added that "Protection remains a key focus area, with protection APE growing 41.5% YoY and its share of total APE rising to 13%."

Growth Continues Across Key Metrics

Canara HSBC Life's Assets Under Management (AUM) increased 13.8% year-on-year to ₹49,683 crore, while its Embedded Value (EV) stood at ₹7,383 crore. The insurer reported an operating Return on Embedded Value (RoEV) of 19.7% on a rolling 12-month basis.

The company reported a 13th-month persistency ratio of 85.9% and a 61st-month persistency ratio of 55.3%, indicating continued customer retention across policies.

On an APE basis, Unit Linked Insurance Plans (ULIPs) accounted for 36% of the product mix, followed by Non-Par Savings (26%), Annuity (14%), Non-Par Protection (13%) and Par products (10%).

Mathur said the insurer remains focused on sustaining profitable growth through a balanced product mix and wider distribution reach. "With strong momentum across distribution, protection and profitability, we remain steadfast in our commitment to deliver sustainable growth and create long-term value in India's growing life insurance market," he said.

Mathur said the insurer remains focused on sustaining profitable growth through a balanced product mix and wider distribution reach. "With strong momentum across distribution, protection and profitability, we remain steadfast in our commitment to deliver sustainable growth and create long-term value in India's growing life insurance market," he said.

Shares of Canara HSBC Life Insurance Company closed 0.53% higher at ₹150.60 on the BSE.