Canara HSBC Oriental Bank of Commerce Life Insurance reported its maiden profit of Rs 23.5 crore in financial year 2012-13. This was its fifth year of operations.
"Distributing exclusively through its shareholder-banks and associates, Canara HSBC Oriental Bank of Commerce Life Insurance’s achievements demonstrate the strength of the bancassurance model in efficiently reaching both urban and rural customers through the reach of the banks' branch networks," said the life insurer in a statement.
The insurer garnered premium income of Rs 1,912 crore in the fiscal, issuing 3,90,974 policies since launch.
For FY13, their 13th-month persistency (a measure of how many policies remain in-force) stood at 75.3% and 25th-month persistency stood at 87.7%.
Their solvency ratio stood at 384% against the regulatory requirement of 150%. Their operating expenses to premium ratio stood at 13%, which the company attributed to to sound financial management and cost efficiencies built in from day one.
John Holden, Chief Executive Officer, Canara HSBC Oriental Bank of Commerce Life Insurance said, "While a lot has changed in the last five years, we are confident of sustained profitable growth; we have the right business model and we have the right business partners. Our focus on regular premium policies, which is closely aligned to the long-term nature of life insurance, has ensured continuous inflows and helped to build sustainable income to support the cost base, delivering a path to profitability."