Canara HSBC Life reports 10.7% jump in Q2 net profit

Anuj Dayal Mathur, MD & CEO, Canara HSBC Life Insurance
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Canara HSBC Life Insurance recorded a 10.69% year-on-year rise in net profit, reaching ₹40.81 crore for the second quarter of the current fiscal year. This growth was supported by a 23.53% surge in net premium income, which amounted to ₹2,259.73 crore compared to ₹1,829.28 crore during the same period last year, as disclosed in regulatory filings.

The company’s first-year premium grew by 12.92% to ₹575.05 crore, while renewal premiums climbed 24.92% to ₹1,419.78 crore in Q2. Management expenses totaled ₹426.95 crore, reflecting a 16.45% increase over the prior year’s ₹366.64 crore.

Embedded Value (EV), combining net asset value and projected future profits, stood at ₹6,543.5 crore for the first half of the fiscal year—a 7.08% annual growth. The Value of New Business (VNB) for H1 increased 21% to ₹214.3 crore, with VNB margins expanding by 150 basis points to 19.6%.

GST rate-cut impact

The recent GST exemption on life insurance premiums reduced VNB margins by 0.5% during H1. Canara HSBC Life Insurance anticipates an annualized impact of approximately 2.25% on margins under the new tax regime, primarily affecting policies issued after September 25. However, management emphasized plans to offset this through strategic adjustments.

Md & CEO Anuj Dayal Mathur stated the company is implementing product mix optimization and leveraging its bancassurance network to capitalize on increased demand from Tier II and III cities. “While GST withdrawal of input tax credit presents short-term challenges, our robust positioning allows us to navigate this transitional phase effectively,” he remarked during the earnings call.

Mathur emphasized the policy’s alignment with broader financial inclusion goals, noting: “The GST reform enhances affordability and strengthens life insurance as a core financial safety net—critical for advancing the ‘Insurance for All by 2047’ vision.”

Published on October 27, 2025