Canara HSBC Life Insurance
| Company type | Joint venture |
|---|---|
| Industry | Life insurance |
| Founded | 2008 |
| Headquarters | Gurugram , India |
Area served | India |
| Products | Life and health insurance, online term plans, credit life coverage, employee benefit schemes, Term life insurance, Unit-linked insurance plan, Endowment policy, Money-back plans, Whole life insurance, Retirement plans |
| Parent | Canara Bank (51%), HSBC Insurance (Asia Pacific) Holdings Limited (26%) |
Canara HSBC Life Insurance is a life insurance provider based in Gurugram, India. Founded in 2008, it began as a joint venture involving Canara Bank holding 51%, HSBC Insurance (Asia Pacific) Holdings Limited with 26%, and Punjab National Bank owning 23%. After Punjab National Bank's withdrawal on 15 June 2022, the company adopted the name Canara HSBC Life Insurance.
The firm delivers a wide range of offerings including life and health insurance, online term plans, credit life coverage, and employee benefit schemes. Its product suite encompasses Term life insurance, Unit-linked insurance plan, Endowment policy, Money-back plans, Whole life insurance, and Retirement plans.
History and overview
Since its inception in 2008, Canara HSBC Life Insurance pioneered the introduction of online policy revival in February 2014, enabling policyholders to digitally renew lapsed policies and settle premiums.
Strategic alliances have been established with several regional rural banks such as Pragathi Gramin Bank (Karnataka), Shreyas Gramin Bank (Uttar Pradesh) in 2009, South Malabar Gramin Bank in 2010, and Dhanlaxmi Bank in June 2017. Additionally, partnerships with Can Fin Homes and IndianMoneyInsurance.com have helped broaden its distribution network.
Following the merger of Oriental Bank of Commerce into Punjab National Bank in April 2020, the company rebranded to Canara HSBC Life Insurance on 15 June 2022. On 25 July 2022, it announced its ninth consecutive customer bonus amounting to ₹78 crore for the fiscal year 2021-2022, reflecting a 28% rise compared to the previous year.
Financials
For the financial year ending March 2020, the company recorded a profit of ₹105 crore (US$19 million), a decrease from ₹165 crore reported in March 2019. Gross Written Premium (GWP) reached ₹3,491 crore, marking a 26% growth over fiscal year 2017–18. The net profit for fiscal year 2017–18 surged by 51% to ₹168 crore.
In early 2021, data from the Insurance Regulatory and Development Authority of India (IRDAI) indicated substantial growth in new business premiums, with profits reaching ₹163.51 crore in January (a 47.49% increase) and ₹186.99 crore in February (a rise of 56%) relative to the previous year.
By March 2022, Embedded Value stood at ₹3,828 crore (US$479 million), accompanied by a solvency margin of 282%. The paid-up capital was reported at ₹950 crore (US$119 million).
In 2022, new business weighted premium income increased by 32% to ₹1,375 crore (US$170 million), while GWP expanded by 15% to ₹5,890 crore (US$740 million) compared to the preceding year.
During the fiscal year 2022-23, Canara HSBC OBC Life Insurance achieved its eleventh consecutive profitable year with a pre-tax profit of ₹100 crore. GWP rose by 22% to ₹7,197 crore, and assets under management (AUM) grew by 15% to ₹30,204 crore as of March 31, 2023. Shareholders were granted a final dividend of 3%, Indian Embedded Value climbed to ₹4,272 crore, and the solvency margin registered at 252%. Participating policyholders received bonuses totaling ₹200 crore. The company currently serves more than 6.9 million customers and has insured over 5.7 million lives under PMJJBY.
See also
- Canara Bank
- HSBC Insurance (Asia Pacific)
- List of insurance companies in India
- Oriental Bank of Commerce
- Punjab National Bank