Canara HSBC LIC shares pare gains as net premium income surges 7% YoY in Q2; ₹287 crore NCD issue approved

This comes as the life insurer reported strong earnings for the second quarter of the 2026-27 financial year (Q2 FY27) after market hours on Friday. The company’s board of directors also approved raising funds up to ₹287.50 crore via the issuance of non-convertible debentures (NCDs).

The company saw its net profit jump by 5.5% year-on-year (YoY) to ₹43.05 crore during the quarter under review, compared with ₹40.81 crore in the July-September quarter of the 2025-26 fiscal year (Q2 FY26).

Its net premium income stood at ₹2,511 crore in the second quarter of FY27, reflecting a 6.9% YoY increase from ₹2,349.34 crore in the same period last year, according to a regulatory filing.

Its income from first-year premium (FYPI) improved by 1% YoY to ₹641.90 crore for the reporting quarter, from ₹575.05 crore in Q2 FY26.

Its income from renewal premiums advanced 15.6% YoY to ₹1,640.91 crore in the quarter ended September 30, 2026, as against ₹1,419.78 crore in the year-ago period.

The firm’s single premium stood at ₹298.44 crore in the quarter, down 0.53% YoY from ₹300.04 crore in the second quarter of the previous financial year.

Canara HSBC LIC H1 FY27 performance

During the first half of the fiscal year (H1 FY27), Canara HSBC LIC delivered a resilient performance amid a dynamic operating environment, it said in a press release, adding that it reported healthy growth in Individual weighted premium income (WPI) and annualised premium equivalent (APE) while continuing to strengthen the quality of its business through improved customer penetration, healthy renewal collections, and sustained persistency.

Its PAT grew 10.8% YoY to ₹71.2 crore in H1 FY27, as against ₹64.2 crore in the six months ended September 30, 2025.

Its new business premium income stood at ₹1,984 crore during the period, marking a 16.1% YoY surge.

New Business Premium refers to the insurance premium that is due in the first policy year of a life insurance contract or a single lump sum payment from the policyholder.

Its Value of New Business (VNB) rose 24% YoY to ₹266 crore, with a new business margin of 21.3%. VNB is the present value of expected future earnings from new policies written during a specified period, and it reflects the additional value to shareholders expected to be generated through the activity of writing new policies during a specified period.

Its assets under management (AUM) soared 13.9% YoY to stand at ₹50,200 crore as of September 30, 2026, from ₹44,090 crore in the year-ago period.

What the MD & CEO said

Commenting on the earnings, Anuj Mathur, MD & CEO, Canara HSBC Life Insurance, said: “H1 FY27 reflected the resilience of traditional segments’ demand, enabling us to deliver healthy growth while further strengthening the quality of our business. Our protection portfolio continued to gain traction, growing by 44% and accounting for 10.5% of total APE, while strong renewal trends underscored the strength of our customer franchise.”

He further stated that the company reported a VNB of ₹266 crore, up 24% YoY, with a VNB margin of 21.3%, reflecting its focus on disciplined execution and profitable growth.

“We also continued to see sustained momentum in credit life and annuity streams, reinforcing our strategy of building a balanced and diversified portfolio aligned to customers' protection, savings and retirement needs,” Mathur added.

Speaking about the Insurance Regulatory and Development Authority of India’s (IRDAI) proposed regulatory reforms, he said that the company views them as a positive step towards enhancing transparency, customer outcomes and the long-term sustainability of the insurance sector.

“As the industry evolves, we remain committed to leveraging our strong distribution franchise and customer-focused approach to create enduring value for customers and stakeholders,” Mathur added.

Fundraiser via issuance of NCDs

Canara HSBC LIC’s board of directors also approved plans to raise funds up to ₹287.5 crore through the issuance of NCDs in the nature of subordinated debt instruments, in one or more series or tranches, on a private placement basis.

Canara HSBC LIC share performance

The stock pared its early gains to trade in negative territory, as it declined 1.46% to stand at ₹137.19 per equity share at around 11:51 AM. The scrip has declined 9% over the month and 6% on a year-to-date (YTD) basis.

While the shares hit a 52-week high of ₹166.69 per unit on July 21, 2026, they touched a year’s low of ₹106 apiece on October 17, 2025.

Canara HSBC LIC has a total market capitalisation of ₹13,286.70 crore as of October 12, 2026, according to data on the NSE.