Target: ₹180
CMP: ₹142.65
Canara HSBC Life Insurance is one of the top-10 life insurance companies in India. It has a diversified product mix, with ULIP/NonPar/Par/Protection contributing 50/34/8/8 per cent in H1-FY26. The business is primarily led by the bancassurance channel, with Canara Bank/HSBC contributing 70/15 per cent in H1-FY26.
Over the past decade, CANHSBC has outperformed the overall industry and private segment with a CAGR of 22 per cent in APE. Resultantly, its market share has increased by 90bp/110bp during the period within the industry/private segment.
We believe the industry is well positioned to deliver strong growth traction, aided by increasing penetration (India’s penetration at 2.8 per cent vs. global 2.9 per cent), GST exemption tailwind, narrowing protection gap in the country (83 per cent in India, highest among peers), and expected favorable regulations such as riskbased solvency, composite license etc.
With one of the most underpenetrated PSU-bank funnels and clear visibility on branch activation, product mix upgrades and operating leverage, we expect the company to deliver over 17 per cent operating RoEV going ahead despite near-term ITC and agency drag.
We initiate coverage on the stock with a Buy rating and a one-year TP of ₹180. Slower-than-expected branch activation at Canara Bank, weaker persistency, or adverse regulatory changes in banca commission norms could delay the margin and APE compounding trajectory.
Published on January 14, 2026
