The insurer is a joint venture between Canara Bank, HSBC and Oriental Bank of Commerce.
Canara HSBC OBC Life Insurance has wiped off its accumulated losses of Rs 160 crore, posting a net profit of Rs 165 crore in FY19. The company’s focus on traditional products (especially protection plans) helped in profitability, Anuj Mathur, CEO, Canara HSBC OBC Life Insurance told Moneycontrol in an interaction.
The company's gross written premium increased by 26 percent to Rs 3,491 crore in FY19 from Rs 2,781 crore in FY18. The insurer declared an embedded value of 2,575 crore as on March 31, 2019.
''Three years back, the portion of traditional products in our business mix was around 10 percent. From that we have moved to 60 percent of traditional products now,'' he added.
With respect to new product launches, Mathur said the plan is to launch four to five new products in this financial year. In FY19, the company launched seven products.
Canara HSBC OBC Life is the only insurance company that does not have agents to sell its product, Mathur said adding, they do not have immediate plans to get into an agency.
''We, however, want to grow the digital channel and have also launched a direct sales channel. This will help us get more business,'' he added.
The insurer’s 13-month persistency (plans that continue beyond one year) stands at 80.9 percent and 61-month persistency (plans that continue beyond five years) stood at 46 percent in FY19. Both grew by 3 percent compared to FY18.As on March 31, 2019, the assets under management (AUM) is Rs 14,854 crore. The company's solvency margin stood at 394 percent as on March 31, 2019.
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