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 leading global financial institution. The insurer states it gains advantages from their powerful brands and customer reach, improving its new customer acquisition potential.

Canara HSBC Life Insurance reports substantial gains in persistency, 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 insurer also highlights a strong Net Promoter Score (NPS), a key indicator of customer satisfaction and loyalty, improving 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 them as a leading performer within the bank-led insurance sector.

Canara HSBC Life Insurance asserts a strong multi-channel approach featuring bancassurance, brokers, corporate agents, and direct digital sales. This strategy, they claim, facilitates extensive customer access, notably spanning across major and smaller cities.

The life insurer asserts rapid profitability, achieving three years of consecutive profit from its initial year, and overall profitability within five years, faster than many competitors. This success is attributed to adaptable strategies within India's evolving life insurance market. From FY22 to FY24, individual weighted premium income (WPI) and total business premium increased at compound annual growth rates (CAGR) of 11.29% and 10.01%, respectively. (Individual WPI equals individual non-single new business premiums plus 10% of individual single new business premiums.) Canara HSBC Life Insurance also highlights strong investment results, with Assets Under Management (AUM) growing at a CAGR of 19.23% between FY22 and FY24, reaching Rs 40,012.74 crore by December 31, 2024.

On December 31, 2024, the company stated that 97.26% of its fixed income holdings consisted of domestic AAA assets, inclusive of government bonds.

In FY24, Canara HSBC Life Insurance reportedly held the third-largest premium share in non-linked, non-participating products within its competitive group. Additionally, for the nine months ending December 31, 2024, it purportedly achieved the second-highest average individual policy premium among life insurers with public sector bank ties.

With 17 individual and seven group products, plus two optional riders and PMJJBY policies, the company asserts its portfolio targets protection, savings, and retirement. This diversified and balanced mix, they claim, is key to fueling growth and satisfying the wide-ranging needs of both individual and group clients.

Canara HSBC Life Insurance leverages AI, data, and automation to boost efficiency, cut expenses, and elevate customer service. This includes digital onboarding, integrated partner platforms for instant processing, and AI-driven underwriting/claims. The company reports these initiatives have shortened turnaround times and enhanced 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: from Rs 215.37 crore in FY22 to Rs 278.06 crore in FY23, reaching Rs 343.88 crore in FY24.