Canara HSBC Life Delivers Robust Q1 FY27 with 29% VNB Surge and Strong Premium Growth

BY ADMIN • FILED 20 Jul 2026, 5:36 PM

Mumbai: Canara HSBC Life Insurance Company Limited began FY2027 on a strong footing, reporting healthy growth across key financial and operational metrics for the quarter ended June 30, 2026 (Q1 FY27). The company’s presentation to analysts and institutional investors highlighted robust momentum in new business, premium collections, profitability, and customer retention, reflecting the success of its long-term growth strategy.

Value of New Business Jumps 29%

Canara HSBC Life recorded a 29% year-on-year increase in Value of New Business (VNB), which rose to ₹1,236 million during the quarter. The company’s VNB Margin also improved to 20.7%, compared with 19.6% in the corresponding period last year, indicating stronger profitability from newly acquired business.

Gross Premium Grows 24%

The insurer reported Gross Premium of ₹21,611 million, representing a robust 24% year-on-year growth.

Key premium metrics included:

Individual Weighted Equivalent Income (WEI): ₹4,698 million, up 18%
Total Annualized Premium Equivalent (APE): ₹5,853 million, an increase of 19%
Renewal Premium: ₹11,174 million, growing 22% year-on-year

The healthy premium growth reflects strong demand across both new and existing customer segments.

Net Profit Increases 20%

Profit After Tax (PAT) for Q1 FY27 stood at ₹281 million, registering a 20% increase compared to the same quarter last year. The improvement demonstrates disciplined cost management, operational efficiency, and sustained business growth.

Embedded Value Continues to Strengthen

The company’s Embedded Value (EV) increased 14% year-on-year to ₹497 billion, highlighting its ability to generate long-term shareholder value.

Canara HSBC Life also reported an Operating Return on Embedded Value (RoEV) of 21.1%, reflecting strong earnings quality and sustainable value creation.

Customer Retention and Claims Performance Improve

Operational indicators remained strong during the quarter:

13-Month Persistency Ratio: Improved to 85.9% from 84.0%, demonstrating higher policyholder retention.
Claim Settlement Ratio: Rose to an impressive 98.85%, compared with 95.90% a year earlier, reinforcing the company’s reputation for customer service and trust.

Diversified Distribution Driving Growth

Canara HSBC Life continues to benefit from its diversified distribution strategy, supported by the extensive branch networks of Canara Bank and HSBC Bank, while steadily expanding through alternate distribution channels.

The company remains focused on delivering profitable growth through customer-centric products, digital transformation, and technology-driven operational excellence.