Synopsis: The stock of the company jumped 10 percent as strong FY26 growth, 43 percent premium rise, and 41 percent VNB growth outweighed Q4 earnings, supported by margin gains and a strong outlook.
The share of this company, which offers diverse insurance solutions, including term plans, savings, and retirement plans primarily through a bancassurance model, leveraging the extensive branch network of its partners, came into focus after Q4 results.
With a market capitalization of Rs 13,779 crore, Canara HSBC Life Insurance Company Ltd’s share on Wednesday made a day high of Rs 149.50 per share, up by 9.76 percent from its previous day’s close of Rs 136.20 per share. The share of this company gave a return of 30 percent since its listing in October 2025.
Results Overview
QoQ View: Gross written premium in Q4 FY26 rose to Rs 3,060.66 crore from Rs 2,867.16 crore in Q3 FY26, up about 6.8 percent, indicating steady growth in business volumes.
Profit before tax increased to Rs 38.61 crore in Q4 FY26 from Rs 30.84 crore in Q3 FY26, a rise of nearly 25.2 percent. Profit after tax also improved to Rs 34.73 crore in Q4 FY26 from Rs 27.65 crore in Q3 FY26, up around 25.6 percent, reflecting better profitability on a sequential basis.
YoY view: Gross written premium in Q4 FY26 rose to Rs 3,060.66 crore from Rs 2,703.47 crore in Q4 FY25, up about 13.2 percent, indicating steady expansion in business scale.
Profit before tax increased to Rs 38.61 crore in Q4 FY26 from Rs 35.03 crore in Q4 FY25, a rise of nearly 10.2 percent. Profit after tax also improved to Rs 34.73 crore in Q4 FY26 from Rs 32.09 crore in Q4 FY25, up around 8.2 percent, reflecting a moderate improvement in profitability.
Fiscal year comparison: Gross written premium in FY26 rose to Rs 9,840.98 crore from Rs 7,850.24 crore in FY25, up about 25.4 percent, reflecting strong expansion in business volumes.
Profit before tax increased to Rs 140.78 crore in FY26 from Rs 128.15 crore in FY25, a rise of nearly 9.9 percent. Profit after tax also improved to Rs 126.61 crore in FY26 from Rs 116.98 crore in FY25, up around 8.2 percent, showing steady improvement in overall profitability.
In FY26, the gross written premium mix was largely driven by single premium at Rs 13,332.09 crore, followed by renewal premium at Rs 6,128.70 crore and first year premium at Rs 2,584.80 crore. This indicates a strong contribution from existing policy renewals and one-time premium policies in the overall business mix.
Q4 Business performance
Profitability and value creation improve: Value of New Business increased 41 percent YoY to Rs 627 crore, showing improved product mix and margins. Profit after tax rose 8 percent to Rs 127 crore, while Embedded Value reached Rs 7,233 crore.
Strong balance sheet and distribution momentum: Assets Under Management increased 12 percent YoY to Rs 46,118 crore, supported by a solvency ratio of 190 percent. Persistency remained healthy at 86.3 percent for 13th month, while agency expansion continued with 500 distributors onboarded, supporting future growth visibility.
Why did the stock jump after Q4 results
Improvement in profit quality and margins: Value of New Business increased 41 percent to Rs 627 crore, with margins improving to 22.4 percent. This reflects better profitability per policy rather than just scale, which is a key driver for long-term valuation.
Strong fundamentals and positive outlook: Embedded value stood at Rs 7,233 crore with RoEV of 20.7 percent, while solvency remained strong at 190 percent. Management commentary on GST benefits and distribution expansion further improved growth visibility.
About the company
Incorporated in 2007, Canara HSBC Life Insurance Company Limited is a joint venture promoted by Canara Bank (36.5 per cent) and HSBC Insurance (Asia Pacific) Holdings Limited (25.5 per cent). As a bancassurance-led insurance company with its corporate office at Gurugram, Haryana and 107 branch offices as of March 31, 2026, pan-India.
Canara HSBC Life Insurance has a vast portfolio of life insurance solutions and offers various products across individual and group spaces, comprising of life, term plans, retirement solutions, credit life and employee benefit segments through partner banks and digital channels.
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