Up and coming life insurance company, Canara HSBC Life Insurance, has posted a net profit of Rs.165 crore for the fiscal year 2019. With this strong performance, the company has also wiped out Rs.160 crore in losses it had accumulated over the year. The company’s CEO, Anuj Mathur, attributed the profitability to the strong performance of its traditional products that includes protection plans.
The company’s income from new business premiums increased by 19% in fiscal year 2019 to Rs.1,460 crore compared to Rs.1,228 crore in the same period of the previous year. The company also posted a 26% growth in its gross written premium to Rs.3,491 crore as against Rs.2,781 crore a year ago. As of March 2019, the paid-up capital of the company was Rs.950 crore.
At the end of the previous fiscal year, Canara HSBC Life also reported that its total assets under management (AUM) increased to Rs.14,854 crore.
The CEO noted that traditional plans contribute to nearly 60% of Canara HSBC Life’s business mix. About three years ago, only 10% of the company’s business mix included traditional plans. He also stated that the company is planning to introduce another 4 to 5 products in this fiscal year. In the previous fiscal year, the company launched 7 new products to its lineup.
The company is renowned for being the only life insurance company in India that does not have agents to sell its products. The CEO noted that the company is focusing on improving its digital channel in the coming years. Moreover, its launch of a direct sales channel is also likely to bring in more sales for it in the coming years.
Canara HSBC Life is owned by three major banks in the country namely Canara Bank, HSBC Bank, and Oriental Bank of Commerce. Canara Bank holds about 51% stake in the company, whereas HSBC and OBC hold about 26% and 23% respectively.