Canara HSBC Life Insurance Company Limited has secured a CARE AA+ stable credit rating from CARE Ratings Limited for its proposed subordinate debt issue worth ₹250 crore. The company informed stock exchanges about this development on February 24, 2026, in compliance with SEBI listing regulations.

Credit Rating Details

CARE Ratings Limited assigned the rating on February 23, 2026, following the company's request for rating assessment. The rating reflects the agency's evaluation of the insurance company's creditworthiness and ability to service its financial obligations.

Regulatory Compliance and Timeline

The company has fulfilled its disclosure obligations under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The rating communication was made to both NSE and BSE on February 24, 2026, with the relevant documentation also made available on the company's website at www.canarahsbcclife.com .

CARE Ratings has established specific conditions for the rating validity. The rating must be revalidated if the proposed issue is not made within six months from the initial communication date of February 18, 2026. Additionally, any changes in the size or terms of the proposed issue would require rating revalidation.

Post-Issuance Requirements

The rating agency has outlined comprehensive post-issuance compliance requirements for Canara HSBC Life Insurance. The company must inform CARE Ratings of specific issue details within seven days of placing the instrument, including ISIN, coupon rate, payment dates, redemption terms, and trustee details.

Key Compliance Requirements:

• Submit copies of all issue-related documents including offer document and trust deed
• Provide details of top 10 investors
• Comply with periodic surveillance and review processes
• Maintain cooperation for continuous monitoring throughout the instrument's lifetime

Rating Significance and Outlook

The CARE AA+ stable rating indicates high safety regarding timely servicing of financial obligations. This rating assignment strengthens Canara HSBC Life Insurance's position in the debt capital markets and provides investors with an independent assessment of the company's creditworthiness.

CARE Ratings reserves the right to undertake surveillance and review of the rating periodically, with at least one review annually. The agency may revise, reaffirm, or withdraw the rating based on ongoing assessment of the company's financial position and market conditions.

Source: None/Company/INE01TY01017/f6a183a0-6901-432c-84f5-16c75c5980b5.pdf

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.