Canara HSBC Life Insurance Company reported a net profit of ₹2,814 lakh for the quarter ended June 30, 2026, marking an increase from ₹2,342 lakh in the corresponding period of the previous year. The insurer's profit before tax stood at ₹3,151 lakh, compared to ₹2,607 lakh in Q1FY25. The board approved the unaudited financial results at its meeting held on July 20, 2026. An audio recording of the analyst meet discussing these results is available on the company's website.

The company recorded a total income of ₹434,698 lakh under the Policyholders' Account, a rise from ₹362,544 lakh in the year-ago quarter. This growth was primarily driven by income from investments, which surged to ₹226,879 lakh from ₹195,230 lakh in Q1FY25. The increase in investment income is attributable to the Mark to Market (MTM) impact on investments in equity markets within Unit Linked Funds. Net Premium Income for the quarter stood at ₹204,752 lakh, up from ₹165,343 lakh in the same period last year.

Financial Performance

The expenses of management for the quarter were reported at ₹44,721 lakh, compared to ₹34,234 lakh in Q1FY25. Benefits paid amounted to ₹83,466 lakh, while the change in actuarial liability was ₹299,731 lakh. The Policyholders' Account recorded a surplus of ₹6,780 lakh, a significant improvement from the surplus of ₹391 lakh in the previous year's first quarter.

Capital and Solvency

The solvency ratio for the quarter ended June 30, 2026, was recorded at 198%, slightly lower than the 200% reported in Q1FY25 but higher than the 190% reported in the preceding quarter ended March 31, 2026. The net worth of the company stood at ₹163,361 lakh as of June 30, 2026. Total borrowings remained constant at ₹25,000 lakh.

The joint statutory auditors, M/s Brahmayya & Co. and M/s Raj Har Gopal & Co., issued a limited review report without any observations. The company has received forbearance from IRDAI to defer the adoption of Ind AS for a period of one year, preparing its financial statements in accordance with Indian GAAP and Schedule II of the IRDAI Regulations, 2024.

Canara HSBC Life Insurance Company reported a Profit After Tax (PAT) of ₹28 crore for the quarter ended June 30, 2026, reflecting a year-on-year increase of 20.2%. The insurer's Value of New Business (VNB) stood at ₹124 crore, growing 28.8% year-on-year, with a VNB margin of 21.1%. The Board of Directors approved the unaudited financial results on July 20, 2026.

Financial Performance

The company achieved an Annualized Premium Equivalent (APE) of ₹585 crore, registering an 18.8% year-on-year growth. Total Premium Income reached ₹2,161 crore, up 23.7% from the same period last year. New Business Premium stood at ₹1,044 crore, a 25.2% increase, driven by a 41.5% rise in protection business. Assets Under Management (AUM) grew 13.8% to ₹49,683 crore.

The following table summarises the key financial metrics for the quarter:

Operational Metrics

Individual Weighted Premium Income (WPI) was recorded at ₹470 crore, with a year-on-year growth of 17.8%. The product mix on an APE basis comprised ULIP at 36%, Non-Par Savings at 26%, Annuity at 14%, Par at 10%, and Non-Par Protection at 13%. The persistency ratios were reported at 85.9% for the 13th month and 55.3% for the 61st month.

Key Ratios

The Solvency Ratio for the quarter stood at 198%, compared to 200% in Q1 FY26. The Expense Ratio increased to 20.7% from 19.6% in the corresponding period of the previous year. Embedded Value (EV) was reported at ₹7,383 crore, with an operating return on EV (RoEV) of 19.7% on a rolling 12-month basis.

Management Guidance

Management remains constructive on the outlook for the life insurance industry and expects to leverage available opportunities. Key guidance points shared during the concall are summarised below: