IDBI Federal Life Insurance company has posted a net profit of Rs 1 billion for the financial year (FY) ending March 31, 2018, as against Rs 520 million earned during FY17. The company’s net profit has grown by 94 per cent between FY17 and FY18.
Total premium revenue earned by the company in FY18 stands at Rs 17.83 billion, around 14 per cent higher than the premium revenues amounting to Rs 15.65 billion during FY17.
Individual business premium revenue has grown by 15 per cent in FY18 to Rs 7.32 billion, while group premium revenues, including renewals, have fallen by 35 per cent, from Rs 1.75 billion in FY17 to Rs 1.14 billion in FY18.
New business premiums have grown by five per cent over the past year to Rs 8.33 per cent at the end of FY18, while renewal premiums have grown by 23 per cent in FY18 to Rs 9.5 billion.
The company now commands over Rs 7.5 billion in assets under management (AUM), as against Rs 60.9 billion in FY17.
Operating expenses as a proportion of total premium earned has decreased marginally from 16 per cent in FY17 to 15 per cent in FY18.
Unit Linked Insurance Plans (ULIPs) now account for 43 per cent of the companies’ product mix in FY18, whereas during FY17, ULIPs only accounted for 22 per cent. Non-participating products comprised 32 per cent of IDBI Federal Life’s product mix in FY2017, which is down to 23 per cent in FY18.
Participating products are only 33 per cent of the product mix in FY18, down from 45 per cent in FY17.
The 13-month persistency ratio for the company has improved from 79 per cent in FY17 to 81 per cent in FY18, while the 61-month persistency ratio has deteriorated from 69 per cent in FY17 to 59 per cent at the end of FY18.
Vighnesh Shahane, chief executive officer of IDBI Federal Life Insurance, says, “Our customer-focused approach and enhanced technology capabilities across operational processes resulted in boosting of the persistency ratio.”
“Our efforts in the coming year will be in line with our purpose, as we implement digital endeavours designed to improve and enhance the entire customer experience from onboarding till policy issuance, as well as further increase process efficiencies. We will also focus on broad-basing our product suite, and scale up our analytics in more aspects of the business,” Shahane added.
The solvency ratio for the life insurer has improved from 352 per cent in FY17 to 371 per cent in FY18.