1. Opening Hook
While Twitter debated GDP numbers and brokers debated valuation multiples, Canara HSBC Life quietly did what insurers are supposed to do—sell policies profitably. And not just sell, but sell better.
Q3 FY26 wasn’t about loud headlines. It was about boring stuff like persistency, rider attachment, cost absorption—and yes, even GST drama. Yet somehow, margins went up.
The management walked in with regulatory optimism, macro confidence, and a spreadsheet that didn’t flinch under GST or labor code noise. Protection suddenly woke up. ULIPs behaved. Annuities kept compounding like a disciplined SIP.
If you expected excuses, you won’t find them here. If you expected execution, buckle up.
Read on—because the real story hides behind “adjusted margins” and “management actions,” and that’s where things get spicy.
2. At a Glance
- Individual WPI up 20% YoY – Private peers crawled; Canara HSBC jogged past them.
- Q3 WPI up 29% YoY – Apparently, seasonality works when you plan for it.
- VNB up 37% YoY (₹413 cr) – GST tried to trip them; margins still stood tall.
- VNB margin at 19.7% – Add back GST & labor code, it’s flirting with 22%.
- EV at ₹6,868 cr (+17%) – Embedded value quietly compounding like a long-term investor.
- Solvency at 191% – And ₹250 cr sub-debt lined up, just in case ambition needs fuel.
3. Management’s Key Commentary
“We have seen individual weighted premium income grow 20% year-on-year.”
(Translation: Growth is organic, not PowerPoint-adjusted 😏)
“Retail protection grew almost three times quarter-on-quarter.”
(Translation: GST gave protection a caffeine shot ☕)
“VNB margins improved by nearly 200 basis points despite GST impact.”
(Translation: Costs behaved, products behaved, spreadsheets smiled 😏)
“Rider attachment on ULIPs is close to 90%.”
(Translation: ULIPs are no longer margin villains 😎)
“13-month persistency improved to 85.6%.”
(Translation: Customers aren’t rage-quitting policies anymore)
“Agency channel launched in October and showing early momentum.”
(Translation: Yes, there’s strain—but we’ve budgeted the pain)
“Solvency will be further strengthened via subordinate debt.”
(Translation: Growth without capital anxiety is the vibe)
4. Numbers Decoded
| Metric | Q3 / 9M FY26 | What It Really Means |
|---|---|---|
| VNB | ₹413 cr | Scale + mix finally syncing |
| VNB Margin | 19.7% | ~21.7% without GST & labor code |
| PAT (9M) | ₹92 cr | ₹101 cr if you ignore one-offs |
| EV | ₹6,868 cr | Compounding, not chasing headlines |
| Expense Ratio | 18.7% | 130 bps leaner than last year |
| Solvency | 191% | Balance sheet sleeping well |
One-liner: Higher volumes absorbed fixed costs; GST didn’t get the last laugh.
5. Analyst Questions
