Anuj Dayal Mathur, MD and CEO, Canara HSBC Life Insurance | Photo credit:
Private sector life insurer Canara HSBC Life Insurance on Monday reported a 10.69 per cent year-on-year increase in net profit to ₹40.81 crore for the second quarter of this fiscal, backed by over 23 per cent year-on-year growth in net premium income.
The insurance company, which witnessed the listing of its shares on the stock exchanges on October 17, had posted a net profit of ₹36.87 crore for the second quarter of the last fiscal. Net premium income grew 23.53 per cent year-on-year to ₹2,259.73 crore in Q2FY26, compared to ₹1,829.28 crore in Q2FY25, according to an exchange filing.
The first year premium increased by 12.92 percent to ₹575.05 crore during the period under review, while the renewal premium increased by 24.92 percent to ₹1,419.78 crore for the period under review.
Management expenses (EoM) rose 16.45 per cent year-on-year to ₹426.95 crore in the second quarter of this fiscal, against ₹366.64 crore in the same period a year ago.
The GST impact on Embedded Value (EV), the sum of net asset value and present value of future profits, was approximately ₹19.8 crore as on September 30, 2025. During the first half of this fiscal, the Embedded Value stood at ₹ 6,543.5 crore, registering a growth of 7.08 percent year-on-year. The value of new business (VNB) grew around 21 per cent year-on-year to ₹2,14.3 crore in the first half of FY26. The VNB margin grew by 150 basis points year-on-year to 19.6 percent in the first half of this fiscal year.
Impact of the GST rate cut
Canara HSBC Life said the impact of the GST exemption on life insurance policies on its VNB margin for the first half was 0.5 percent.
“VNB margin was 19.6 percent, reflecting an improvement of 150 basis points year-on-year (during the first half of FY26). The margin expansion was a combination of increasing volumes with increased add-ons. However, this was partially offset by a 50 basis point impact from GST. Of this, only 10 basis points relates to policies written after September 25. On this basis, we expect a annualized impact of approximately 2.25 percent annually. our margin. This is without management action. Our aim will be to maintain our margin at FY25 levels,” said MD & CEO Anuj Dayal Mathur during the company’s first earnings conference call with analysts and investors.
With the withdrawal of tax credit under the new GST regime, the insurer may see some short-term impacts, but as a company it is well prepared to navigate the transition, Mathur said.
The insurer is actively implementing a range of measures to mitigate the GST impact. As part of the strategic review, the company is optimizing its product mix.
Given its strong bancassurance network, the company is well positioned to capitalize on the opportunities arising from the GST rationalization and increase demand, which the company will witness from Tier II and Tier III cities.
“The GST exemption on life insurance premiums is a landmark reform that has arrived at a very crucial time for the industry. It focuses not only on affordability but also on long-term customer behavior by improving persistence, deepening adoption and expanding the base of new buyers. In principle, it reinforces life insurance as one of the key savings and protection needs, rather than just a discretionary purchase. We believe that this reform will significantly extend the sector’s growth trajectory in the near future. years. It is also well aligned with the government’s vision of ‘Insurance for All’ by 2047,” Mathur added.
Published on October 27, 2025
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