Private sector IDBI Federal Life Insurance posted a 31 per cent increase in net profit to ₹133 crore in 2018-19, compared to ₹101 crore in the previous fiscal. Its total premium grew by 8 per cent to ₹1,933 crore in 2018-19, against ₹1,783 crore in the previous fiscal.

“This was led by a 19 per cent growth in renewals and over 50 per cent growth in credit life,” it said in a statement on Friday.

The insurer also announced a maiden dividend of 10 per cent

 

PTI adds:

Credit life is a product in which a life insurance policy is being designed to pay off a borrower’s debt if the policy holder dies.

“During the year, IDBI Federal experienced a robust growth of 32 per cent in VNB (value of new business premium) driven by a single-minded focus on adapting our product mix to the changing needs of customers,” it said.

The company also maintained a solvency margin of 334 per cent to take care of the interests of policyholders. Further, in July 2018, IDBI Federal was the first new-age life insurance company to wipe out all accumulated losses, the company said.

“In 2018-19, with a 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.

We also implemented a slew of digital initiatives which enhanced the customer experience and helped bring in further efficiencies across our distribution channels,” Vighnesh Shahane, managing director (MD) and chief executive officer (CEO), IDBI Federal Life Insurance said.

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