Private sector IDBI Federal Life Insurance, which has been in the spotlight over a possible stake sale by at least one of its promoters, said the talks have had an impact on its new business premium growth this fiscal. However, the insurer said it is still on track to meet the net profit target of ₹150 crore in 2018-19.

“Profits have increased by 22 per cent in the first half of the fiscal year, and is likely to be on course to touch ₹150 crore in 2018-19,” said Vighnesh Shahane, CEO, IDBI Federal Life Insurance, adding that this will be a 50 per cent increase over the net profit of ₹101 crore the insurer achieved last fiscal.

However, with the uncertainty around a possible stake sale, sales numbers in the nine months of the fiscal were hit as many employees left the company, he said. According to IRDAI data, first-year premium of the insurer declined by 14.12 per cent between April and November this fiscal.

“New business growth is the only casualty this year. But I hope it goes back into double-digits by the year end,” said Shahane.

He further said the acquisition of a majority stake by Life Insurance Corporation of India in IDBI Bank has, till now, not impacted operations of the private sector insurer. “There is not much change in dynamics since LIC has come on board,” he said, adding that there has been no discussion on whether IDBI Bank will sell its stake in the insurer.

“At present, LIC has just fulfilled the gap in capital for IDBI Bank,” he said.

IDBI Bank holds 48 per cent stake in the insurer, while Federal Bank and Belgian insurer Ageas hold 26 per cent stake each. Meanwhile, the private sector life insurer also unveiled a new fitness campaign with cricketer Sachin Tendulkar as its brand ambassador.

The #KeepMoving movement aims to redefine the idea of fitness for India. “Through the movement, IDBI Federal seeks to drive home the message that to lead a healthy lifestyle it is important to focus on both physical and financial fitness,” the insurer said in a release.

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