Canara HSBC Life Insurance Q3 profit slips 5.7% on higher expenses

Canara HSBC Life Insurance reported a modest decline in December-quarter profit as higher operating and commission expenses offset strong growth in premium income, APE and value of new business

Canara HSBC Life Insurance’s net profit slipped 5.69 per cent year-on-year to ₹27.65 crore in the third quarter of FY26 (Q3FY26), from ₹29.32 crore in Q3FY25, on account of higher expenses.

 

How did premium income and expenses move during the quarter? 

The net premium income of the insurer rose by 42.98 per cent year-on-year to ₹2,005.32 crore in the quarter, compared with ₹2,867.16 crore in Q3FY25. However, expenses of the insurer increased by 35.26 per cent year-on-year to ₹389.91 crore during the quarter.

 

The net commission paid by the insurer rose 34.3 per cent year-on-year to ₹136.06 crore. Apart from commissions, the company also made a provision of ₹8.7 crore towards the new labour code.

 

What was the performance on APE, VNB and margins? 

The annualised premium equivalent (APE) of the insurer stood at ₹1,002.7 crore in Q3FY26, up 37.47 per cent year-on-year from ₹729.4 crore in Q3FY25. The value of new business (VNB), a key measure of profitability, rose to ₹198 crore. The VNB margin improved to 19.81 per cent in Q3FY26 from 17.03 per cent in Q3FY25.

 

“As we build scale, our focus remains on further expanding protection coverage pan India through a more diversified channel mix, sharper product proposition and deeper engagement in India’s growth markets,” said Anuj Mathur, managing director and chief executive officer, Canara HSBC Life Insurance.

 

How did solvency and persistency ratios change? 

The solvency ratio of the insurer stood at 195 per cent, compared with 215 per cent in Q3FY25.

 

The 13th-month persistency ratio improved to 85.60 per cent in the April–December period of FY26 from 83.4 per cent in the same period last year. However, the 61st-month persistency slipped to 59.20 per cent from 57.5 per cent.