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Canara HSBC Life Insurance IPO
Canara HSBC Life Insurance Company Ltd
₹14,000 /140 sharesMinimum Investment
Canara HSBC Life Insurance IPO Listing Details
| Listed On | Issue Price | Listing Price | Listing Gains |
|---|---|---|---|
| BSE | ₹106.00 | ₹106.00 | ₹0.00 (0.00%) |
Canara HSBC Life Insurance IPO Details
| Bidding Dates | Min. Investment | Lot Size | Price Range |
|---|---|---|---|
| 10 Oct ‘25 - 14 Oct ‘25 | ₹14,000 | 140 | ₹100 - ₹106 |
| Issue Size | IPO Doc |
|---|---|
| 2517.50Cr | RHP PDF |
Subscription rate
As of 14 Oct'25, 04:01 PM
| Qualified Institutional Buyers | 6.63x |
| Non-Institutional Investor | 0.31x |
| Retail Individual Investor | 0.39x |
| Employees | 1.88x |
| Total | 2.15x |
About Canara HSBC Life Insurance
Founded in
2007
Managing director
Mr Anuj Dayal Mathur
Parent organisation
Canara HSBC Life Insurance Company Ltd
Canara HSBC Life Insurance Company Ltd IPO
https://www.youtube.com/watch?v=ACBtB9CBmBY
Strengths & Financials of Canara HSBC Life Insurance
Strengths
Risks
Canara HSBC Life Insurance claims to have strong backing from its promoters, Canara Bank (51 percent stake) and HSBC Insurance (Asia-Pacific) Holdings Limited (26 percent stake). According to the CRISIL Report, Canara Bank was the fourth-largest public sector bank by total assets in India as of FY25. The company claims to have leveraged this parentage to develop its own brand visibility, reflected in an improved net promoter score (NPS) from 50 in FY23 to 70 in FY25 and 75 in June 2025, and high persistency and claims settlement ratios.
The company claims to have a diversified distribution network spanning bancassurance, brokers, corporate agents, and direct digital sales. Through agreements with Canara Bank, HSBC, seven regional rural banks, and other partners, it claims access to over 15,700 branches and 117 million customers across India. This network reportedly enables customer acquisition at lower costs and supports an expansive presence across Tier 1, 2, and 3 cities.
The company claims its individual weighted premium income (WPI) grew at a CAGR of 14.65 percent between FY23 and FY25, while its assets under management (AUM) grew at a CAGR of 16.74 percent, totalling Rs 43,639.50 crore as of June 30, 2025. The company also claims to maintain operational efficiency through strategic use of distribution channels and technology infrastructure, reflected in an operating expense to gross written premium (GWP) ratio of 14.09 percent for the period ended June 30, 2025. Its embedded value reportedly increased from Rs 4,271.93 crore in FY23 to Rs 6,352.64 crore in June 2025, indicating growth in enterprise business value.
Canara HSBC Life Insurance claims to have a diversified portfolio with 20 individual products, seven group products, two optional rider benefits, and policies under the PMJJBY scheme, covering protection, savings, and retirement needs. The company claims to tailor offerings based on customer profiling across key life stages and to provide flexibility through multiple plans, riders, and fund choices within unit-linked products. It also claims to use a straight-through-processing system for claims, reducing average settlement time to 5.33 days for the period ended June 30, 2025, from 5.56 days in FY25, with an overall settlement rate of 99.38 percent.
Canara HSBC Life Insurance claims to have a technology-driven business platform integrating artificial intelligence (AI), machine learning, and data analytics to enhance operational efficiency and risk management. The company claims to use automated underwriting, predictive and prescriptive models for customer retention, and digital payment solutions to streamline policy issuance, service, and claims processing.
The company has witnessed a consistent increase in profit after tax (PAT). It increased from Rs 91.19 crore in FY23 to Rs 113.32 crore in FY24 and Rs 116.98 crore in FY25.
Canara HSBC Life Insurance derives a significant portion of its new business premiums through bancassurance. Its top partner, Canara Bank, accounted for Rs 609.79 crore (73.16 percent) of the company’s total new business premium in the period ended June 30, 2025; Rs 2,203.30 crore (70.58 percent) in FY25; Rs 1,779.15 crore (61.33 percent) in FY24; and Rs 1,630.49 crore (43.87 percent) in FY23. Any termination, disruption, or adverse changes in the bancassurance arrangements with Canara Bank, or a decline in the performance standards of this partner, could adversely affect the company’s product sales and business growth.
Canara HSBC Life Insurance’s solvency ratio has decreased over the last three fiscal years, with the ratio at 200.42 percent for the period ended June 30, 2025, down from 205.82 percent in FY25, 212.83 percent in FY24, and 251.81 percent in FY23. However, it remains higher than the regulatory requirement of 150 percent. Sliding solvency ratio or failure to maintain the required solvency ratio, or changes in IRDAI regulations, including a shift to a risk-based solvency regime, may require the company to raise additional capital, submit corrective financial plans, or face restrictions on transacting new business.
The company reported negative cash flow from operating activities amounting to Rs 1,350.70 crore in the period ended June 30, 2024. This was primarily due to high withdrawal payouts from fund-based group products and partial withdrawals from unit-linked insurance policies (ULIPs). Any recurrence of such negative cash flows in the future may adversely impact its liquidity, financial condition, and overall operations.
Fluctuations in interest rates could materially impact the company’s profitability, as its asset-liability portfolio is sensitive to changes in market rates. As of June 30, 2025, total assets under management (AUM) stood at Rs 43,639.50 crore, with investments spread across equity (34.84 percent), government securities (39.54 percent), debentures and bonds (20.17 percent), and money market instruments (5.07 percent). The Indian capital markets offer a limited supply of long-term fixed-income products, and investment restrictions under Indian insurance regulations constrain the company’s ability to align asset tenures with liabilities. A sudden rise or fall in interest rates could affect product pricing, profitability, and policyholder behaviour, potentially resulting in higher surrenders, increased reserves, or the need for additional capital infusion.
The company may face challenges in adequately hedging risks arising from its guaranteed return products. As of June 30, 2025, guaranteed return policies in force stood at 490,490, representing 43.63 percent of total policies, with reserves for these policies amounting to Rs 10,089.02 crore, or 24.21 percent of total reserves. These products expose the company to interest rate and reinvestment risks. While forward rate agreements (FRAs) are used to mitigate such risks, any misestimation of interest rate movements, incorrect contract specifications, or misalignment between hedges and actual exposures could materially increase financial risks and adversely impact the company’s business and financial condition.
The company has experienced a high employee attrition rate of 34.31 percent for the period ended June 30, 2025, up from 32.09 percent in FY25, indicating significant turnover among critical workforce segments. High attrition could lead to operational disruptions, delays in service delivery, increased recruitment and training costs, and reduced capacity to promote or distribute products, thereby negatively impacting the company’s business and results of operations.
A significant portion of the company’s new business premium from individual products in India is concentrated in Karnataka. It accounted for Rs 89.40 crore (21.83 percent) of the company’s total new business premium from individual products in the period ended June 30, 2025; Rs 500.9 crore (22.48 percent) in FY25; Rs 397.87 crore (22.27 percent) in FY24; and Rs 371.84 crore (20.17 percent) in FY23. Any adverse social, political, or economic developments in this region could materially impact the company’s business, financial condition, results of operations, and cash flows.
The company, its promoters, and directors are involved in certain ongoing legal proceedings, including criminal and tax-related cases. Any adverse judgments in any of these cases could be detrimental to the company’s business prospects.
As of June 30, 2025, the company had contingent liabilities of Rs 319.89 crore. If any of these contingent liabilities materialise, it could adversely affect the company’s financial condition.
Canara HSBC Life Insurance Financials
*All values are in Rs. Cr
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Application Details of Canara HSBC Life Insurance IPO
| Apply as | Price band | Apply Range |
|---|---|---|
| Regular | ₹100 - 106 | Upto ₹2 Lakh |
| Employee | ₹90 - 96 | Upto ₹2 Lakh |
| High Networth Individual | ₹100 - 106 | ₹2 - 5 Lakh |
For Canara HSBC Life Insurance IPO, eligible investors can apply as Regular & Employee.