Canara HSBC Life Insurance shares: Centrum initiates 'Buy' call; sees 20% upside
The brokerage noted, "Canara HSBC Life has built a strong growth franchise anchored on its bancassurance partnerships with promoters Canara Bank and HSBC, with the banca channel contributing ~93 per cent of individual WPI and offering significant headroom given insurance penetration of
- Mar 11, 2026,
- Updated Mar 11, 2026 1:13 PM IST
Centrum Institutional Research has initiated coverage on Canara HSBC Life Insurance Company Ltd with a 'Buy' rating, citing strong growth prospects driven by its bancassurance partnerships and improving product mix.
The brokerage noted, "Canara HSBC Life has built a strong growth franchise anchored on its bancassurance partnerships with promoters Canara Bank and HSBC, with the banca channel contributing ~93 per cent of individual WPI and offering significant headroom given insurance penetration of
It added, "While growth has been led by ULIPs (61 per cent mix in 9M FY26), the company is gradually increasing its focus on margin-accretive traditional products, with protection share rising from 3.7 per cent in FY22 to 7 per cent in 9M FY26 and annuities increasing from 2.3 per cent to ~12-13 per cent. Consequently, VNB margins, which declined from 21.4 per cent in FY22 to 19.1 per cent in FY25 due to the ULIP tilt, are expected to improve to 20.4 per cent in FY26E, 21.2 per cent in FY27E, and 21.9 per cent in FY28E. Growth momentum remains strong, with APE expected to grow at ~20 per cent CAGR to ~Rs 4,000 crore by FY28E and VNB projected to grow at ~25 per cent CAGR to ~Rs 880 crore, supported by improving product mix and distribution expansion."
Centrum also highlighted improvements in the insurer's persistency ratios and strong solvency position.
It stated, "Persistency metrics have strengthened significantly (13th month: 74.5 per cent in FY22 to 85.6 per cent in 9M FY26; 61st month: 47.3 per cent to 59.2 per cent), while solvency remains comfortable. Embedded Value has grown at 17 per cent CAGR over FY22-FY25 to Rs 6,100 crore and is projected to reach ~Rs 9,800 crore by FY28E, with operating ROEV sustained at 17-18 per cent. Given the company’s strong distribution advantage, improving product mix, and robust growth outlook, the stock is valued at 1.7x FY28E P/EV, implying a target price of Rs 176. We initiate coverage on the stock with a BUY rating."
The target price of Rs 176 implies a potential upside of around 20 per cent from the brokerage's assessed price of Rs 147.
Centrum Institutional Research has initiated coverage on Canara HSBC Life Insurance Company Ltd with a 'Buy' rating, citing strong growth prospects driven by its bancassurance partnerships and improving product mix.
The brokerage noted, "Canara HSBC Life has built a strong growth franchise anchored on its bancassurance partnerships with promoters Canara Bank and HSBC, with the banca channel contributing ~93 per cent of individual WPI and offering significant headroom given insurance penetration of
It added, "While growth has been led by ULIPs (61 per cent mix in 9M FY26), the company is gradually increasing its focus on margin-accretive traditional products, with protection share rising from 3.7 per cent in FY22 to 7 per cent in 9M FY26 and annuities increasing from 2.3 per cent to ~12-13 per cent. Consequently, VNB margins, which declined from 21.4 per cent in FY22 to 19.1 per cent in FY25 due to the ULIP tilt, are expected to improve to 20.4 per cent in FY26E, 21.2 per cent in FY27E, and 21.9 per cent in FY28E. Growth momentum remains strong, with APE expected to grow at ~20 per cent CAGR to ~Rs 4,000 crore by FY28E and VNB projected to grow at ~25 per cent CAGR to ~Rs 880 crore, supported by improving product mix and distribution expansion."
Centrum also highlighted improvements in the insurer's persistency ratios and strong solvency position.
It stated, "Persistency metrics have strengthened significantly (13th month: 74.5 per cent in FY22 to 85.6 per cent in 9M FY26; 61st month: 47.3 per cent to 59.2 per cent), while solvency remains comfortable. Embedded Value has grown at 17 per cent CAGR over FY22-FY25 to Rs 6,100 crore and is projected to reach ~Rs 9,800 crore by FY28E, with operating ROEV sustained at 17-18 per cent. Given the company’s strong distribution advantage, improving product mix, and robust growth outlook, the stock is valued at 1.7x FY28E P/EV, implying a target price of Rs 176. We initiate coverage on the stock with a BUY rating."
The target price of Rs 176 implies a potential upside of around 20 per cent from the brokerage's assessed price of Rs 147.