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Private sector life insurer Canara HSBC Life Insurance on Monday reported a 10.69 per cent year-on-year increase in net profit at ₹40.81 crore for the second quarter this fiscal, backed by over 23 per cent y-o-y growth in net premium income. The insurance company, which witnessed listing of its equity shares on stock exchanges on October 17, had posted a net profit of ₹36.87 crore for the second quarter of last fiscal. Its net premium income during Q2FY26 grew 23.53 per cent y-o-y to ₹2,259.73 crore, compared to ₹1,829.28 crore in Q2FY25, according to a stock exchange filing. The first-year premium rose 12.92 per cent to ₹575.05 crore during the period under review, whereas renewal premium increased 24.92 per cent to ₹1,419.78 crore for the period under review. Expenses of management (EoM) rose 16.45 per cent y-o-y to ₹426.95 crore in the second quarter of this fiscal, against ₹366.64 crore in the year-ago period. The GST impact on its Embedded Value (EV), the sum of net asset value and the present value of future profits, was around ₹19.8 crore as on September 30, 2025. For the first half of this fiscal, the Embedded Value stood at ₹6,543.5 crore, registering a 7.08 per cent y-o-y growth. Value of New Business (VNB) for the first half of FY26 grew around 21 per cent y-o-y to ₹2,14.3 crore. VNB margin grew 150 basis points y-o-y at 19.6 per cent for the first half of this fiscal. GST rate-cut impact Canara HSBC Life said the impact of the GST exemption on life insurance policies on its VNB margin was 0.5 per cent for the first half. “The VNB margin stood at 19.6 per cent, reflecting a 150 bps improvement year-on-year (during H1FY26). The margin expansion was a combination of rising volumes with increased rider attachments. However, this was partially offset by a 50 bps impact on account of GST. Of this, only 10 bps impact pertains to policies written after September 25. Basis this we expect an annualised impact of approximately 2.25 per cent on our margin. This is without management action. Our endeavour will be to keep our margin similar to FY25 levels,” said MD & CEO Anuj Dayal Mathur during the company’s first earnings conference call with analysts and investors. With the withdrawal of input tax credit under the new GST regime, the insurer may see some short-term implications, but as a company, it is well prepared to navigate the transition, Mathur said. The insurer is actively implementing a series of measures to mitigate the GST impact. As part of its strategic review, the company is optimising its product mix. Given its strong bancassurance network, the company is well positioned to capitalise on opportunities arising from GST rationalisation and increase demand which it is going to witness from tier II and tier III cities. “The GST exemption on life insurance premium is a landmark reform that has arrived at a very crucial juncture for the industry. It addresses not only affordability, but also long-term customer behaviour by improving persistency, deepening adoption and expanding the base of first-time buyers. In principle it reinforces life insurance as a core savings and protection needs, rather than just a discretionary purchase. We believe that this reform will significantly extend the industry’s growth trajectory over the coming years. It also aligns well with the government’s vision of ‘Insurance for All’ by 2047,” Mathur added. Published on October 27, 2025
