| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹ 100 to ₹ 106 | 140 | 10th Oct, 2025 – 14th Oct, 2025 | ₹2517.50 Cr |
Canara HSBC Life Insurance Co. Ltd
Canara HSBC Life Insurance is a private life insurance company incorporated in 2007, having strong backing of its promoters, Canara Bank, the fourth largest public sector bank by total assets, and HSBC Insurance (Asia-Pacific) Holdings Limited, part of the globally reputed HSBC Group. This strategic partnership provides the company with a solid distribution base, credibility, and brand strength in the competitive life insurance landscape. The company has delivered robust growth performance, recording the third highest individual weighted premium income (WPI) growth among bank-led insurers between FY22 and FY25, and the second-highest YoY growth in FY25 among its peer set. Furthermore, it is the third-largest AUM among public sector bank-promoted life insurers, highlighting its growing scale and prudent asset management. In terms of operations, the company ranks third among public sector bank-led life insurers in terms of the number of lives covered in FY25, demonstrating its expanding customer base and strong bancassurance penetration. Its Annualised Premium Equivalent (APE) has shown consistent improvement, supported by a diversified product mix and distribution efficiency. The company remains financially strong, with a solvency ratio of 200.4% (as of June 30, 2025), comfortably above the regulatory threshold of 150%, reflecting sound capital management and risk resilience. Having provided coverage to 10.5 million lives, Canara HSBC Life Insurance continues to strengthen its market positioning as a formidable bank-led private life insurer, underpinned by operational discipline, promoter synergy, and consistent financial performance.
Objective of the Canara HSBC Life Insurance Co. Ltd IPO
The company will not receive any proceeds from the Offer.
Rationale To Canara HSBC Life Insurance Co. Ltd IPO
Established parentage and trusted brand driving strong customer acquisition and retention
Canara HSBC Life Insurance has a strong and credible parentage, promoted by Canara Bank (holding 51%) and HSBC Insurance (Asia-Pacific) Holdings Limited (holding 26%). This dual backing from one of India’s leading public sector banks and a globally reputed financial institution provides the company with a solid foundation of trust, brand strength, and distribution advantage. The insurer derives substantial business through its promoter networks, with Canara Bank and HSBC India contributing over 70% of new business premiums across recent years. While this highlights strong bancassurance integration, it also reflects deep customer trust in the promoters’ brands. The company has simultaneously strengthened its independent brand identity, focusing on superior service delivery and customer engagement, evidenced by its Net Promoter Score (NPS) improving from 50 in FY23 to 70 in FY25, and further to 75 as of June 30, 2025. This enhanced customer satisfaction is translating into stronger business quality metrics. The company’s 13th-month persistency ratio (by premium, excluding single premium) improved significantly from 75.3% in FY23 to 82.5% in FY25, reaching 84.3% in Q1FY26 the highest improvement among bank-led life insurers between FY23 and FY25. This, alongside an improvement in the claims settlement ratio from 99.1% in FY23 to 99.4% in FY25, underscores prudent underwriting, robust risk management, and superior policyholder servicing. Overall, the company’s promoter credibility, brand strength, customer centric strategy, and operational consistency position it as a resilient and trusted player in the bank led private life insurance segment, with improving customer retention and service excellence driving sustainable growth.
Long term value creation backed by consistent and profitable financial performance
Canara HSBC Life Insurance is committed to long term value creation, driven by a consistent track record of financial performance. The company was one of the life insurers to report fastest three consecutive years of profit from the first year of operation amongst their peer set and was amongst one of the fastest life insurers to generate profits in fifth year of operations. The company has showcased sustained growth momentum and operational discipline, driven by its strategic initiatives and agility within India’s evolving life insurance sector. Between FY23 and FY25, the company’s individual weighted premium income (WPI) expanded at a CAGR of 14.7%, reflecting consistent business traction across its core segments. The company has also delivered robust investment performance, with AUM growing at a CAGR of 16.7% between March 31, 2023, and March 31, 2025, reaching Rs. 4,36,395 million as of June 30, 2025. Importantly, its investment portfolio demonstrates a high-quality asset mix, with 97.3% of the total fixed income portfolio invested in domestic AAA rated instruments, including sovereign securities underscoring a conservative and risk averse investment strategy that supports long-term financial stability. Operationally, the company continues to exhibit strong cost discipline despite making strategic investments to sustain growth. Overall, Canara HSBC Life Insurance demonstrates a balanced growth approach combining consistent business expansion, superior asset quality, and operational prudence, positioning it well among India’s leading bank led private life insurers.
Valuation of Canara HSBC Life Insurance Co. Ltd IPO
Canara HSBC Life Insurance aims to increase life insurance penetration by maximizing synergies with its bancassurance partners, focusing on seamless customer onboarding and tailored product offerings. The Indian life insurance industry is projected to register a premium CAGR of 8–10% between FY24 and FY28, with bank-led insurers expected to outperform, growing at 10–12% CAGR during the same period. This growth outlook is supported by strong macroeconomic fundamentals such as robust GDP expansion, a young and productive demographic base (64% of the population aged 15–59 in CY23), and rapid urbanization. A key element of this strategy involves leveraging Canara Bank’s extensive distribution network, provides access to 117 million customers through 9,849 branches across India, thereby enabling deeper market penetration and scalable growth within the existing partnership ecosystem. On the financial front, the company has demonstrated steady value creation, as reflected in the consistent growth of its Embedded Value (EV) rising from Rs. 42,719.3 million in FY23 to Rs. 51,798.6 million in FY24, and further to Rs. 61,107.4 million in FY25, with an additional uptick to Rs. 63,526.4 million as of June 30, 2025. This sustained increase underscores the company’s strong operational performance, profitable business growth, and disciplined capital management, reinforcing its long-term shareholder value creation potential. Additionally, with 10.5 million lives covered, the company demonstrates a broad customer base and deep market reach, underscoring the trust and confidence policyholders place in its life insurance offerings. At the upper price band of Rs 106, the company is currently valued at a P/EV (Price to Embedded Value) multiple of 1.6x (FY25), which appears attractive in comparison to industry peers, indicating potential undervaluation as growth and profitability sustain. We, thus, recommend a “SUBSCRIBE” rating for this issue.
What is the Canara HSBC Life Insurance Co. Ltd IPO?
The initial public offer (IPO) of Canara HSBC Life Insurance Co. Ltd offers an early investment opportunity in Canara HSBC Life Insurance Co. Ltd . A stock market investor can buy Canara HSBC Life Insurance Co. Ltd IPO shares by applying in IPO before All Canara HSBC Life Insurance Co. Ltd shares get listed at the stock exchanges. An investor could invest in Canara HSBC Life Insurance Co. Ltd IPO for short term listing gain or a long term.
How to apply for the Canara HSBC Life Insurance Co. Ltd IPO through StoxBox?
To apply for the Canara HSBC Life Insurance Co. Ltd IPO through StoxBox one can apply from the website and also from the app. Click here
When will the Canara HSBC Life Insurance Co. Ltd IPO open?
Canara HSBC Life Insurance Co. Ltd IPO is opening on 10th Oct 2025. Apply Now
What is the lot size of the Canara HSBC Life Insurance Co. Ltd IPO?
The Lot Size of Canara HSBC Life Insurance Co. Ltd IPO is 140 equity shares. Login to your account now.
When is the Canara HSBC Life Insurance Co. Ltd allotment date?
The allotment Date for Canara HSBC Life Insurance Co. Ltd IPO is 15th oct 2025. Login to your account now.
When is the Canara HSBC Life Insurance Co. Ltd IPO listing date?
The listing Date for Canara HSBC Life Insurance Co. Ltd IPO is 17th Oct 2025. Login to your account now
What is the minimum investment required for the Canara HSBC Life Insurance Co. Ltd IPO?
In the Retail segment the minimum investment required is Rs. 14,840. Login to your account now
What is the maximum investment allowed for the Canara HSBC Life Insurance Co. Ltd IPO?
In the Retail segment the maximum investment requirement is Rs. 1,92,920. Login to your account now
What are the risks associated with investing in the Canara HSBC Life Insurance Co. Ltd IPO?
- The company’s growth is closely linked to its bancassurance partnerships with Canara Bank and HSBC India. Hence, any termination or adverse change in these arrangements, or a decline in partner performance, could negatively impact business growth and financial performance. A decline in persistency ratios or high customer surrenders could adversely affect the company’s revenue stability, profitability, and cash flows, given the reliance on sustained policy renewals for long-term earnings. Operating in a highly regulated industry, the company remains exposed to regulatory changes or compliance lapses, which could disrupt operations or result in financial and reputational risks.
When will the Canara HSBC Life Insurance Co. Ltd IPO shares be credited to my Demat account?
The Canara HSBC Life Insurance Co. Ltd IPO be credited to the account on allotment date which is 17th Oct 2025. Login to your account now
Where can I find the Canara HSBC Life Insurance Co. Ltd IPO prospectus?
The prospectus of Canara HSBC Life Insurance Co. Ltd IPO prospectus can be find on the website of SEBI, NSE and BSE
