VNB surges 41% to ₹627 crore for full year; gross premium crosses ₹10,000 crore for first time; board declares ₹0.40/share dividend
Canara HSBC Life Insurance Company reported a 9% rise in net profit to ₹35 crore for the fourth quarter ended March 2026, against ₹32 crore in the same period last year. Results were declared on April 28, 2026, after market hours, triggering a 10% rally in the stock the following session, this being only the third set of quarterly numbers the company has announced since its stock market debut in October 2025.
Q4 Financials: Income Decline Overshadows Profit Growth
Total income for the quarter declined sharply to ₹1,268 crore from ₹2,759 crore in Q4 FY25. The primary drag was investment income: income from investments turned deeply negative at ₹1,716 crore during Q4 FY26, compared to a positive ₹55 crore in the year-ago period. This reflects mark-to-market volatility in the equity-linked portfolio, a known feature of insurance company financials in volatile market years, and does not reflect operational deterioration.
On the premium side, the company collected a net premium of ₹3,061 crore in Q4 FY26, up from ₹2,703 crore a year earlier, a 13% increase that signals healthy underlying business momentum.
Full-Year FY26: Record Numbers Across Key Metrics
The quarterly numbers tell only part of the story. The full-year picture is considerably stronger. For FY26, Canara HSBC Life Insurance reported Individual Weighted Premium Income (WPI) of ₹2,593 crore, up 19% year-on-year, one of the highest growth rates among the top 10 life insurers. Total APE reached ₹2,799 crore, a 20% YoY increase.
Value of New Business (VNB) surged 41% to ₹627 crore, with VNB margin improving to 22.4% from 19.1% in FY25, reflecting a meaningful improvement in the quality and profitability of new business written.
Total premium income crossed ₹10,046 crore for the first time, up 43% YoY. Assets Under Management (AUM) grew 12% to ₹46,118 crore. Embedded Value (EV) stood at ₹7,233 crore, with an operating return on embedded value (RoEV) of 20.7%.
Full-year PAT came in at ₹126.61 crore, up from ₹116.98 crore in FY25, with EPS rising to ₹1.33 from ₹1.23.
Protection Business: The Standout Performer
The protection business grew 115% year-on-year, with its share of the product mix rising to 7% of APE. The company also recorded its best-ever claims settlement ratio at 99.6%.
Persistency ratios, a key measure of customer retention, stood at 86.3% at the 13th month and 55.4% at the 61st month. The 13th-month figure improved from 85.6% reported in the 9M FY26 update, indicating that policy lapse rates are trending in the right direction.
Dividend and Capital Actions
The board recommended a final dividend of ₹0.40 per equity share for FY26, subject to shareholder approval. The company also issued ₹250 crore of AA+-rated subordinated NCDs during FY26 at a coupon of 8.15% per annum, redeemable in 10 years with a call option at 5 years, rated CRISIL AA+/Stable and CARE AA+/Stable.
Distribution Expansion: Agency Channel Scaling
While bancassurance through Canara Bank and HSBC Bank remains the core growth engine, the company has begun scaling its agency channel, onboarding 500 distributors with APE at ₹14 crore as of March 2026.
CEO Statement and Sector Tailwinds
MD & CEO Anuj Mathur said, “Our first annual results since listing reflect a business that has delivered growth with discipline and balance. We have outperformed the industry on WPI growth, strengthened our protection portfolio, seen significant growth in the value of new business, and improved VNB margins.”
Mathur also highlighted a structural sector tailwind: “With structural enablers such as the removal of GST on individual life insurance, the Indian life insurance sector is entering a sustained growth phase.”
Stock and Valuation Context
Shares of Canara HSBC Life Insurance were last trading at ₹136.20 on BSE on the results day, against a previous close of ₹139.50, before the post-result 10% rally. The stock hit an intraday high of ₹139.05 and a low of ₹133.35 during the session. The company’s current market capitalisation stands at approximately ₹13,898 crore.
The investment income drag is a one-quarter distraction. The underlying operating metrics, VNB up 41%, protection business up 115%, and gross premium crossing ₹10,000 crore, tell the story of a recently listed insurer executing ahead of expectations in its first full year as a public company.
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Frequently Asked Questions
Q1. What was Canara HSBC Life Insurance’s net profit in Q4 FY26?
Canara HSBC Life Insurance reported a net profit of ₹35 crore in Q4 FY26, a 9% rise from ₹32 crore in Q4 FY25, as per the company’s regulatory filing declared on April 28, 2026. Full-year FY26 PAT stood at ₹126.61 crore, up from ₹116.98 crore in FY25.
Q2. Why did Canara HSBC Life Insurance’s total income fall in Q4 FY26?
Total income declined to ₹1,268 crore in Q4 FY26 from ₹2,759 crore in Q4 FY25 due to investment income turning negative at –₹1,716 crore, against a positive ₹55 crore a year ago. This reflects mark-to-market portfolio volatility and does not indicate operational deterioration; net premium collections actually grew 13% to ₹3,061 crore in the same quarter.
Q3. What is Canara HSBC Life Insurance’s VNB and VNB margin for FY26?
Value of New Business (VNB) surged 41% year-on-year to ₹627 crore in FY26, per the company’s audited results. VNB margin improved to 22.4% from 19.1% in FY25, reflecting higher profitability on new policies written during the year.
Q4. What dividend has Canara HSBC Life Insurance declared for FY26?
The board of Canara HSBC Life Insurance recommended a final dividend of ₹0.40 per equity share for FY26, subject to shareholder approval, per its April 28, 2026, board meeting outcome filed with BSE and NSE. The company’s EPS for FY26 stood at ₹1.33, up from ₹1.23 in FY25.
Q5. Is Canara HSBC Life Insurance a good stock to buy after Q4 FY26 results?
The operating metrics are strong: VNB up 41%, protection business up 115%, gross premium crossing ₹10,000 crore for the first time, and VNB margin improving to 22.4%. The 10% post-result stock rally reflects this. However, with market cap at ₹13,898 crore and the investment income line prone to mark-to-market swings, investors should focus on VNB trajectory and persistency ratios, both trending positively over quarterly PAT figures.
