Canara HSBC Life Insurance Company Limited delivered robust financial performance for the nine months ended December 31, 2025, demonstrating strong growth momentum in its first year as a listed entity. The company's Board of Directors approved unaudited results showing significant improvements across key financial and operating metrics, with particular strength in protection business and persistency ratios.

Strong Financial Performance Across Key Metrics

The company's financial results for 9M FY26 showcase consistent growth across multiple parameters:

The Value of New Business margin improved to 19.70% from 17.60% in the previous year, reflecting enhanced profitability of new business written during the period. The company's Embedded Value stood at ₹6,867.80 crore with an operating return on embedded value of 18.20% on a rolling 12-month basis.

Protection Business Drives Exceptional Growth

The protection segment emerged as a key growth driver, registering remarkable 126% year-on-year growth. This surge was supported by stronger demand backed by GST-led affordability tailwinds and significant expansion in credit life business. Credit Life business grew 48% year-on-year, while Individual Protection business increased three times quarter-on-quarter.

Persistency metrics showed continued improvement, with 13-month persistency reaching 85.60% compared to 83.40% in the previous year, and 61-month persistency at 59.20% versus 57.50% previously. These improvements reflect disciplined customer engagement and enhanced service quality.

Operational Efficiency and Business Expansion

The company maintained operational efficiency with an expense ratio of 18.70%, improved from 20.00% in 9M FY25. The solvency ratio stood at 191%, demonstrating strong financial stability. Product diversification continued with ULIP comprising 61% of APE, Non-Par Savings 13%, Non-Par Protection 7%, Par 5%, and Annuity 12%.

Strategic Initiatives and Product Innovation

During the quarter, Canara HSBC Life launched Promise4Life, a participating, non-linked savings plan combining guaranteed income with practical features including a Savings Wallet and Premium Offset for enhanced flexibility. The company also entered into a bancassurance partnership with Equitas Small Finance Bank, expanding access to its product suite across 994 outlets in 18 states and union territories, with strong presence in South and West India.

Managing Director & CEO Anuj Mathur highlighted the strengthening business momentum underpinned by sustained growth across key performance metrics, including stronger persistency and accelerated protection-led growth supported by recent GST reforms. He emphasized the company's focus on expanding protection coverage pan-India through diversified channel mix, sharper product proposition, and deeper engagement in India's growth markets.

Premium Growth Across Segments

Both new business and renewal premiums demonstrated strong growth trajectories:

The robust renewal premium growth of 34.40% indicates strong customer retention and the company's ability to maintain long-term relationships with policyholders. This performance supports the improved persistency ratios and reflects the effectiveness of customer engagement strategies implemented by the company.

Canara HSBC Life Insurance Company has announced plans to raise ₹250.00 crores through the issuance of non-convertible debentures (NCDs), marking a significant capital-raising initiative by the life insurance provider.

Fundraising Details

The company's decision to tap the debt market through NCDs represents a strategic approach to strengthen its financial position. The proposed fundraising amount demonstrates the insurer's commitment to maintaining robust capital levels in the competitive life insurance landscape.

Strategic Implications

The NCD issuance plan reflects the company's focus on optimizing its capital structure through debt financing. Non-convertible debentures provide companies with access to long-term funding while offering investors fixed-income investment opportunities. For life insurance companies, maintaining adequate capital reserves is crucial for meeting regulatory solvency requirements and supporting business expansion.

Market Context

This fundraising initiative comes as life insurance companies continue to focus on strengthening their balance sheets and expanding their market presence. The debt route through NCDs allows the company to raise capital without diluting existing shareholders' equity, making it an attractive financing option for established insurance providers.

The planned debenture issue underscores Canara HSBC Life Insurance's commitment to maintaining financial stability while positioning itself for future growth opportunities in India's evolving insurance market.