Canara HSBC Life Insurance Co. Ltd. IPO
Canara HSBC Life Insurance Company Limited is a leading private life insurer in India, jointly promoted by Canara Bank and HSBC Insurance (Asia-Pacific) Holdings Limited. Canara Bank — India’s fourth-largest public sector bank by total assets (as of March 31, 2025, CRISIL Report) — provides strong domestic brand equity and distribution reach, while HSBC brings its global reputation, adding credibility and trust. Incorporated in 2007, the company has emerged as a prominent bank-led private life insurer with a wide customer base and robust financial performance.
Market Position
Ranks third among public sector bank-led life insurers in India by number of lives covered (Fiscal 2025, CRISIL Report). It recorded the third-highest individual weighted premium income (WPI) growth among bank-led insurers between Fiscal 2022 and 2025 and the second-highest YoY growth in Fiscal 2025 (CRISIL Report). It has the third-highest assets under management (AUM) among public sector bank-promoted life insurers as of March 31, 2025.
Distribution Network
Bancassurance is the company’s primary distribution channel, contributing 92.33% of new business premium in Q1 FY26, supported by strong tie-ups with Canara Bank (9,849 branches), HSBC India (26 branches with approval for 20 more), and seven Regional Rural Banks, providing access to 15,700+ branches across India (as of March 31, 2025). This network is complemented by brokers, corporate agents, digital platforms, a dedicated field sales force, and a specialized defense channel catering to armed forces personnel and their families.
Product Portfolio
Comprehensive range for individual and group customers:
1. Savings & Endowment Plans
2. Term (Pure Protection) Plans
3. Retirement Solutions
4. Group Credit Life & Protection Plans
5. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
Balanced product mix across participating, non-participating savings, protection, unit-linked, annuity, and group savings plans — reducing concentration risk and adapting to market cycles.
Competitive Strengths
i) Strong Promoter Parentage: Backed by Canara Bank (51%) and HSBC Insurance (26%) ensuring credibility, brand equity, and extensive bancassurance network.
ii) Consistent Profitability: Among the fastest life insurers to achieve profitability within five years of operation.
iii) Pan-India Reach: Wide distribution network across Tier 1–3 cities, supported by technology and digital integration.
iv) Diverse Product Mix: Caters to mass-market and high-net-worth individuals, reducing business cycle risks.
v) Technological Leadership: Advanced digital onboarding, predictive analytics, and automation enhancing efficiency and customer satisfaction.
Objects of the Canara HSBC Life Insurance Co. Ltd. IPO:
Canara HSBC Life Insurance Co. Ltd. IPO Details:
| Open Date: | Oct 10 2025 |
| Close Date: | Oct 14 2025 |
| Total Shares: | 23,75,00,000 |
| Face Value: | ₹ 10 Per Equity Share |
| Issue Type: | Book Building |
| Issue Size: | 2517.50 Cr. |
| Lot Size: | 140 Shares |
| Issue Price: | ₹ 100-106 Per Equity Share |
| Listing At: | NSE,BSE |
| Listing Date: | Oct 17 2025 |
Promoters And Management:
Financials of Canara HSBC Life Insurance Co. Ltd. IPO:
| Particulars | 3M FY2025-26 | FY 2024-25 | FY 2023-2024 | FY 2022-2023 |
| AUM (cr) | 43,639.40 | 41,166.40 | 37,389.40 | 30204.4 |
| Individual weighted premium income | 398.90 | 2,178.60 | 1,702.60 | 1657.5 |
| Annualized premium equivalent | 492.7 | 2339.3 | 1887.7 | 1883.7 |
| Renewal business premium | 913.7 | 4905.9 | 4227.6 | 3480.7 |
| Individual No. of Policies | 40 K | 1.94L | 1.84 L | 1.86 L |
| Total Income (Cr) | 42.35 | 234.01 | 240.88 | 261.59 |
| EBITDA | 31.28 | 149.91 | 146.56 | 118.82 |
| EBITDA Margins | 73.86% | 64.06% | 60.84% | 45.42% |
| PAT | 23.4 | 116.9 | 113.3 | 91.1 |
| PAT Margins | 55.25% | 49.96% | 47.04% | 34.82% |
| Claim Settlement Ratio | 99.38 | 99.38 | 99.31 | 99.11 |
| Value of new business (Cr) | 95.9 | 446 | 377.5 | - |
| Total cost ratio | 19.59% | 18.70% | 18.89% | 17.36% |
| Operating expenses to GWP ratio | 14.09% | 12.39% | 13.12% | 11.62% |
Comparison With Peers:
| Companies | Revenue (in cr) | EBITDA Margins | PAT Margins | AUM(Cr) | Cost Ratio | MCap (in cr) | P/E |
| Canara HSBC Life Insurance Company | 234.01 | 64.06% | 49.96% | 41,166.40 | 18.70% | 10,070 | 86.14 |
| SBI Life Insurance Company Limited | 116888 | 2% | 2.06% | 447466.9 | 9.68% | 181,465 | 72.9 |
| HDFC Life Insurance Company Limited | 92922 | 1% | 1.95% | 336398.8 | 19.83% | 162,946 | 86.6 |
| ICICI Prudential Life Insurance Company Limited | 70778 | 2% | 1.68% | 303979 | 18.04% | 86083 | 68.2 |
| Note: Forward P/E is 107.58 According to FY 2026 PAT | |||||||
Lead Manager of Canara HSBC Life Insurance Co. Ltd. IPO:
Registrar of Canara HSBC Life Insurance Co. Ltd. IPO:
Discussion on Canara HSBC Life Insurance Co. Ltd. IPO:
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