IDBI Federal Life Insurance reports 31 pc rise in net profit to Rs 133 cr in FY19

IDBI Federal Life Insurance Friday reported a 31 per cent rise in its net profit to Rs 133 crore for the fiscal 2019.

The company's net profit stood at Rs 101 crore in 2017-18.

It is the seventh consecutive year of profit for the company since it first declared profit in 2012-13, IDBI Federal Life said.

The insurer witnessed a growth of 8 per cent in its total premium from Rs 1,933 crore in 2018-19, compared to Rs 1,783 crore in the preceding fiscal, IDBI Federal Life Insurance said.

The growth was mainly driven by a 19 per cent rise in renewals and over 50 per cent increase in credit life.

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.

It has also announced a maiden dividend of 10 per cent as recommended by the board, subject to approval in the annual general meeting.

"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 and chief executive officer, IDBI Federal Life Insurance said.