Private life insurer IDBI Federal Life Insurance reported a 31 percent year-on-year (YoY) growth in its FY19 net profit at Rs 133 crore.
The insurer saw an 8 percent YoY increase in total premium to Rs 1,933 crore. IDBI Federal Life said this was driven by a 19 percent rise in renewals and over 50 percent growth in credit life. The company has also announced a maiden dividend of 10 percent which is subject to approval at its annual general meeting.
Vighnesh Shahane, MD & CEO, IDBI Federal Life Insurance said, “In FY19, with tight control on costs, a focus on underwriting and a leaner organisation, we have been able to serve our customers better which has resulted in improved scores on most parameters.”
New regulations are expected in FY20 and the company hopes to further enhance product portfolio and make it more customer-centric by leveraging the new areas opened up by the regulations, he said. It will also launch digital initiatives to improve customer touch-points.
IDBI Federal Life is a joint venture between IDBI Bank and Federal Bank, with Belgium-based Ageas SA/NV as the foreign partner. IDBI Bank has Life Insurance Corporation of India as its majority shareholder.
The insurer’s 13th-month persistency stood at 86 percent in FY19 (81 percent in FY18) and their surrender ratio stood at 2.15 percent in FY19. In July 2018, the life insurer had wiped off its accumulated losses.
In terms of the product mix, unit-linked insurance plans were 33 percent, non-par was 33 percent and par was 34 percent in FY19. Ulips were 42 percent of total annualised premium equivalent in FY18.
Corporate agents (banks) account for 89 percent of the premiums collected, the agency is 8 percent. IDBI Bank and Federal Bank distribute the insurance products of the company.