Canara HSBC Life Insurance IPO

Canara HSBC Life Insurance leverages the strength of its parent companies: Canara Bank, holding a 51% share as a major Indian public sector bank, and HSBC Insurance (Asia-Pacific) Holdings Limited, with a 26% stake as a global financial services giant. This partnership allows the company to capitalize on the established reputations and extensive customer reach of both promoters, aiding in acquiring new customers.

Canara HSBC Life Insurance reports substantial gains in policyholder retention, with persistency ratios rising from 74.51% in FY22 to 80.73% in FY24, and further to 83.45% for the nine months ending December 31, 2024. The company also highlights strong customer satisfaction, reflected in a growing Net Promoter Score (NPS), climbing from 41 in FY22 to 60 in FY24 and reaching 69 as of December 31, 2024.

The company boasts a high claims settlement ratio, indicating successful claim resolutions against requests annually. This ratio rose from 99.05% in FY22 to 99.31% in FY24, placing it as a leading performer within the bank-led insurance sector.

Canara HSBC Life Insurance asserts a strong multi-channel approach, using bancassurance, brokers, corporate agents, and direct digital sales. They state this diverse strategy supports extensive customer access, especially in major metropolitan areas and smaller cities.

The life insurer asserts it quickly achieved profitability compared to competitors, reporting three straight years of profit from its initial year and profitability within five years. It credits this to agile strategies in India's evolving life insurance market. From FY22-FY24, individual weighted premium income (WPI) and total business premium grew at 11.29% and 10.01% CAGR, respectively. (Individual WPI is defined as the sum of individual non-single new business premiums, and 10% of individual single new business premiums during the relevant financial year or period.) Canara HSBC Life Insurance also highlights strong investment returns, with AUM growing at a 19.23% CAGR between FY22-FY24, reaching Rs 40,012.74 crore as of December 31, 2024.

By the close of 2024, the company reported that 97.26% of its fixed income holdings were domestic AAA-rated, inclusive of government-backed securities.

Canara HSBC Life Insurance states it achieved the third-largest proportion of premiums from non-linked, non-participating policies within its competitor group in FY24. The company also claims the second-biggest average individual insurance premium per policy among life insurers connected to public sector banks for the period ending Dec 31, 2024.

The company boasts a wide-ranging product portfolio including 17 individual products, seven group products, two optional rider benefits, and PMJJBY policies. This comprehensive offering covers protection, savings, and retirement, and the company asserts that this diversified and balanced portfolio is essential for fueling growth and adequately serving the varying needs of individual and group clients.

Canara HSBC Life Insurance leverages AI, data, and automation to boost efficiency, cut expenses, and elevate customer service. Their digital onboarding, real-time integration with partners, and AI-driven underwriting/claims streamline operations. They assert these strategies shortened turnaround times and increased customer satisfaction, evidenced by a low complaint rate of 49 per 10,000 new policies in FY24.

Profit after tax (PAT) steadily grew for the company, rising from Rs 215.37 crore in FY22 to Rs 278.06 crore in FY23, and reaching Rs 343.88 crore in FY24.