Canara HSBC Life Insurance Q1 FY27 Results: Net Profit Rises 20.2% YoY to ₹28 Crore as VNB Surges 28.8%

Canara HSBC Life Insurance Company Limited (NSE: CANHLIFE | BSE: 544583) has officially announced its unaudited financial results for the first quarter ended June 30, 2026 (Q1 FY27). Driven by expanding protection business, balanced product mix improvements, and strong distribution channel execution, the life insurer reported a 20.2% year-on-year (YoY) increase in Net Profit After Tax (PAT) to ₹28 crore (₹2,814 lakh), alongside robust expansion in new business profitability.

Key Financial & Operational Highlights (Q1 FY27 vs Q1 FY26)

Net Profit After Tax (PAT): Advanced 20.2% YoY to ₹28 crore (₹2,814 lakh) compared to ₹23 crore (₹2,342 lakh) in Q1 FY26.

Value of New Business (VNB): Climbed 28.8% YoY to ₹124 crore from ₹96 crore in Q1 FY26, expanding the New Business Margin to 21.1%.

Annualized Premium Equivalent (APE): Expanded 18.8% YoY to ₹585 crore from ₹493 crore in Q1 FY26.

New Business Premium (NBP): Total NBP (Individual + Group) surged 25.2% YoY to ₹1,044 crore compared to ₹833 crore in the corresponding quarter of the previous fiscal. First-year premiums stood at ₹6,606 lakh, while single premiums reached ₹57,762 lakh.

Renewal Premium Income: Rose 22.3% YoY to ₹1,117 crore (₹1,11,773 lakh) compared to ₹914 crore (₹91,374 lakh) in Q1 FY26.

Total Premium Income: Reached ₹2,161 crore (₹2,04,752 lakh Net Premium Income), marking a 23.7% YoY growth over ₹1,747 crore (₹1,65,343 lakh) in Q1 FY26.

Individual Weighted Premium Income (WPI): Stood at ₹470 crore, registering a 17.8% YoY growth over ₹399 crore in Q1 FY26.

Assets Under Management (AUM): Expanded 13.8% YoY to ₹49,683 crore as of June 30, 2026, compared to ₹43,640 crore as of June 30, 2025.

Embedded Value (EV): Stood at ₹7,383 crore, delivering an Operating Return on EV (Operating RoEV) of 19.7% on a rolling 12-month basis.

Product Mix & Distribution Highlights

The company's performance reflected strategic diversification across product lines and distribution partnerships, including new alliances such as the collaboration with West Bengal Gramin Bank.

Number of policies issued grew by 19% YoY during the quarter.

Product Portfolio Breakup (on APE Basis):

Unit Linked Insurance Plans (ULIP): 36% (vs 49% in Q1 FY26)

Non-Participating Savings: 26% (vs 18% in Q1 FY26)

Annuity: 14% (vs 15% in Q1 FY26)

Non-Participating Protection: 13% (vs 11% in Q1 FY26)

Participating Plans (PAR): 10% (vs 7% in Q1 FY26)

Protection & Credit Life Momentum: Total protection business expanded 41.5% YoY, raising protection's share in total APE to 13%. Credit Life business also recorded significant traction with a 40.7% YoY growth.

Financial Statements Overview

Policyholders' Revenue Account (Technical Account)

Investment Income (Net): Investment returns in the Policyholders' Account totaled ₹2,26,879 lakh for Q1 FY27 compared to ₹1,95,230 lakh in Q1 FY26.

Total Policyholders' Income: Stood at ₹4,34,698 lakh versus ₹3,62,544 lakh in Q1 FY26.

Net Commission Expense: Commission payments totaled ₹11,768 lakh (comprising ₹7,575 lakh on First Year, ₹2,410 lakh on Renewal, and ₹1,783 lakh on Single Premium) compared to ₹9,817 lakh in Q1 FY26.

Operating Expenses: Operating expenses related to insurance business stood at ₹32,953 lakh (Employee Remuneration: ₹21,903 lakh; Other Operating Expenses: ₹11,050 lakh), compared to ₹29,694 lakh in Q1 FY26. Total Management Expenses came to ₹44,721 lakh.

Benefits Paid (Net): Net claims and policyholder benefits paid stood at ₹75,466 lakh compared to ₹1,10,673 lakh in Q1 FY26.

Actuarial Liability Change: Provisioning for actuarial liabilities came in at ₹2,99,731 lakh (vs ₹2,15,074 lakh in Q1 FY26).

Policyholders' Surplus: The total surplus in the revenue account for the quarter stood at ₹6,780 lakh (vs ₹301 lakh in Q1 FY26), out of which ₹2,731 lakh was transferred to the Shareholders' Account. Total overall surplus reached ₹7,293 lakh.

Shareholders' Account (Non-Technical Account)

Investment Income: Net investment income attributable to shareholders came in at ₹5,455 lakh (vs ₹1,568 lakh in Q1 FY26).

Profit Before Tax (PBT): Shareholders' PBT stood at ₹3,151 lakh (vs ₹2,607 lakh in Q1 FY26).

Tax Provision: Tax expense for the quarter was ₹337 lakh (vs ₹265 lakh in Q1 FY26).

Earnings Per Share (EPS): Basic and Diluted EPS (face value ₹10/- per share) increased to ₹0.30 for the quarter from ₹0.25 in Q1 FY26 (un-annualised).

Key Operational Ratios & Solvency Position

Solvency Ratio: Stood strong at 198% as of June 30, 2026, comfortably above the regulatory requirement of 150% (compared to 200% as of June 30, 2025).

Expense Ratio: Total expense ratio (Total Expenses / Total Premium) stood at 20.7% compared to 19.6% in Q1 FY27.

Persistency Ratios (Premium Basis):

13th Month: Improved to 85.9% (53.16% under regular/limited premium criteria) from 84.0% in Q1 FY26.

25th Month: Stood at 72.15% (vs 75.0% in Q1 FY26).

37th Month: Recorded at 70.45% (vs 63.7% in Q1 FY26).

61st Month: Maintained steady at 55.3% (52.7% on specific regular payment terms).

Persistency Ratios (Policy Basis): 13th-month policy persistency reached 76.7%, and 61st-month policy persistency stood at 51.3%.

Yield on Investments (Policyholders' Fund):

Without unrealised gains (Non-Linked Non-Par): 7.0%

With unrealised gains (Non-Linked Non-Par): 7.0%

Linked Non-Par (with unrealised gains): 5.5%

Balance Sheet & Capital Structure Summary

Paid-Up Capital & Reserves: Paid-up equity share capital was maintained at ₹95,000 lakh (face value ₹10 per share). Reserves and Surplus (excluding revaluation reserves) expanded to ₹68,361 lakh compared to ₹59,028 lakh as of June 30, 2025. Total Shareholders' Funds grew to ₹1,63,361 lakh.

Total Assets: Overall assets managed by the company scaled to ₹50,01,595 lakh (₹50,015.95 crore) as of June 30, 2026, compared to ₹44,04,798 lakh as of June 30, 2025.

Investment Breakdown:

Shareholders' Investments: ₹1,89,061 lakh

Policyholders' Investments: ₹28,14,941 lakh

Assets covering Linked Liabilities: ₹19,64,313 lakh

Borrowings & Debt Ratios: Subordinated debt borrowings stood at ₹25,000 lakh, leading to a Debt-Equity Ratio of 0.15 times and Total Debts to Total Assets ratio of 0.005. Current ratio for the quarter stood at 1.03.

MD & CEO's Statement - Anuj Mathur, MD & CEO, Canara HSBC Life Insurance, said "Our focus on profitable growth continued to deliver results in Q1, supported by strong distribution network and product mix improvements. Despite a complex global economic environment, we reported APE growth of 18.8% YoY, in line with our stated guidance. Our distribution-led strategy continued to gain traction, reflected in a 19% YoY increase in the number of policies issued.

Protection remains a key focus area, with protection APE growing 41.5% YoY and its share of total APE rising to 13%. Credit Life also continued to be a significant growth driver, registering healthy advancement of 40.7% YoY.

We delivered a healthy VNB of ₹124 crore with a YoY growth of 28.8% for Q1 FY27. This improvement was supported by a favorable shift in product mix towards protection and traditional offerings. With strong momentum across distribution, protection, and profitability, we remain steadfast in our commitment to deliver sustainable growth and creating long-term value in India's growing life insurance market."

Shares of Canara HSBC Life Insurance Company Limited was last trading in BSE at Rs. 149.85 as compared to the previous close of Rs. 149.80. The total number of shares traded during the day was 39913 in over 489 trades.

The stock hit an intraday high of Rs. 151.00 and intraday low of 148.45. The net turnover during the day was Rs. 5975356.00.

Source : Equity Bulls

Keywords

CanaraHSBCLifeInsuranceCompany CANHLIFE INE01TY01017 Q1FY27 Q1FY2027 ResultUpdate