Canara HSBC Life Insurance Company Ltd (CANHLIFE) Q2 FY27 Results Analysis: Gross Premium Grows 12.5%, EoM Ratio Widens 180 bps

Canara HSBC Life Insurance Company Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 2,581.25 Cr (+12.50% YoY) and PAT growth of +5.50% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Q2 FY27 gross premium grew 12.5% YoY to Rs.2,581 Cr with renewal premium up 15.6%, and H1 PAT rose 10.8% YoY to Rs.71.19 Cr, though normalized PAT was roughly flat after a Rs.2.86 Cr IL&FS write-back. The EoM ratio widened 180 bps YoY to 20.4% on the GST input-credit loss despite a 30 bps QoQ improvement, solvency declined to 180% from 198%, and persistency fell across 13- and 61-month cohorts. H2 outcomes hinge on ULIP MTM recovery, the expense-ratio trajectory, and the proposed Rs.287.50 Cr NCD issuance.

Key Investment Insights

Key Positives

• Gross premium grew 12.5% YoY to Rs.2,581 Cr (+19.4% QoQ); renewal premium rose 15.6% YoY to Rs.1,640.91 Cr
• H1 FY27 PAT grew 10.8% YoY to Rs.71.19 Cr; Q2 PAT rose 53% QoQ to Rs.43.05 Cr
• EoM ratio improved 30 bps QoQ to 20.4% from 20.7%
• Shareholders' fund GNPA improved to 4.2% from 5.6% YoY with IL&FS interim distribution of Rs.2.85 Cr received; net NPAs zero
• H1 operating cash flow more than doubled to Rs.1,666.06 Cr from Rs.777.83 Cr
• Non-linked NP Pension segment (J) posted surplus of Rs.3.08 Cr vs deficit of Rs.23.72 Cr in Q2 FY26

Risk Factors

• EoM ratio widened 180 bps YoY to 20.4%; employee costs (+30.6% YoY) and other operating expenses (+28.0% YoY) outpaced premium growth of 12.5%
• Solvency ratio declined to 180% from 198% QoQ and 190% at FY26 year-end
• 13-month persistency fell to 80.8% (82.0% YoY) and 61-month persistency to 52.2% (55.8% YoY)
• Policyholders' investment income swung to (Rs.33.42) Cr on ULIP equity MTM losses; policyholders' account posted deficit of Rs.11.49 Cr vs surplus of Rs.112.32 Cr YoY
• Normalized PAT declined ~0.8% YoY excluding the Rs.2.86 Cr IL&FS write-back, versus reported +5.5%
• Gross premium growth of 12.5% YoY below industry NBP growth (20.7%/33.1% Jul-Aug); CFO resigned effective 24 Nov 2026