Private life insurance company IDBI Federal Life Insurance has posted a maiden profit of Rs 9.24 crore for financial year 2012-13 in its fifth year of operation. The company has posted a 44% rise in sales of number of new business policies.
G V Nageswara Rao, Managing Director & CEO, IDBI Federal Life Insurance said, "Achieving break-even in the fifth year is a significant landmark. We have pursued profitable growth as our company strategy. Our new business premium growth of 23% compares with negative growth of 15% reported by the industry. Our growth rate is one of the highest in the industry, with a large number of companies posting negative growth. What is even more satisfying is the fact that this achievement comes at a time when the entire life Insurance industry is facing many challenges and growth is hard to come by."
The 13th month persistency of the company stood at 76%. Rao added that they were among the top three players in terms of the 25th, 37th and 49th month persistency. The AUM (Assets under Management) were up by 24% and stood at Rs 2,732 crore.
IDBI Federal started its operations in March 2008 and has a solvency ratio at 491% as against the regulatory requirement of 150%. The company presently has a paid-up share capital of Rs 800 crore. The cost ratio of the company went down from 26% in 2011-12 to 24% in 2012-13.
In terms of the products, while Rao maintained that the company would concentrate on traditional products, the company is looking to launch a group pension product. The company said that this product would be filed with the regulator.