MUMBAI, 11th MAY, 2020 (GPN): IDBI Federal Life Insurance, one of India’s leading private life insurance companies, today reported a net profit of INR 162 crore for the FY20, a growth of 22% over FY19. This is the 8th consecutive year of profit for the organisation since it first declared profit in FY13. IDBI Federal also recorded a total premium of INR 1,843 in FY20 as against INR 1,933 in FY19, driven by a strong growth of 14% in renewal premium.

For the second consecutive year, the organisation has paid an interim dividend of 4.65% for FY20.
By staying attuned to customer needs and looking to tailor experiences and solutions that meet those needs, the 13th month persistency reached 83% with the company being in the top quartile of all persistency buckets. Keeping customers’ preferences at the epicentre led to the sixth consecutive year of zero open complaints at the end of FY 19-20 in the Integrated Grievance Management System (IGMS) of IRDAI. The average turnaround time (TAT) in resolving complaints is below 2 days which is among the best in the life insurance industry and considerably lower than the industry average of 5 days.

Understanding and managing risks is of vital importance and the organisation has instituted strong governance practices and an integrated enterprise risk management system to identify, analyse and mitigate risks.

IDBI Federal’s overarching purpose is to empower people to create the life and lifestyle of their choice. In line with this, the organisation’s popular marathons, organised in five cities across the country, saw over 72,000 runners from different walks of life and age groups participate across the various race categories. At each marathon, cricketing legend and brand ambassador of IDBI Federal, Sachin Tendulkar was present to flag-off the runners and encourage them to give their best.

The organisation was also recognised as one of ‘India’s Best Workplaces in BFSI 2020 – Top 25’ by the Great Place to Work® Institute, reflecting its success in driving best people practices and an engaging employee experience.

Speaking on the organisation’s performance during the year, Mr. Vighnesh Shahane, MD & CEO, IDBI Federal Life Insurance said, “While FY2019-20 has been a challenging year for the organisation, we have taken a number of steps to steady the course. We focused on growing our distribution footprint primarily through our proprietary channels, while continuing to strengthen bottomline parameters such as persistency, costs, surrenders, claims, PAT and solvency margin. In line with the new product guidelines introduced by the regulator, we revamped our product suite, introducing features that made our products more customer-centric and offered policy holders greater flexibility.”

Mr. Shahane further added, “The Covid-19 pandemic is putting us through unprecedented and difficult times, but I am confident we will get through this crisis and emerge stronger. On the business front, we will continue to ramp up our proprietary distribution channels, while looking to further leverage the relationship with our bancassurance partners. Another focus will be on harnessing the power of digital to an even greater extent through initiatives and technology that provide a superior experience to our customers, partners, vendors and employees.”

Key Financial Summary FY20
(Rs. In Cr) FY19
(Rs. In Cr) YoY %
Total Premium 1,843 1,933 (4.65%)
Renewal Premium 1,282 1,126 14%
Profit Before Tax 162 133 22%
Assets Under Management (AUM) 9,775 9,107 7%
VNB Margin (in %) 24.5% 22.7%

Key Financial Ratios FY20 FY19
Operating Expenses / Total Premium 13.8% 13.7%
Solvency Ratio 298% 334%
13M / 61M Persistency
(as of Feb’20 on Overall Premium)
13th Month – 83%
61st Month – 55% 13th Month – 86%
61st Month – 60%
Conservation Ratio 83% 82%
Business Mix (%) on Individual APE
(ULIP / Non PAR / PAR) ULIP: 27%
Non PAR: 48%
PAR: 25% ULIP: 34%
Non PAR: 31%
PAR: 35%
Individual Distribution on NBP
(CA/Agency/Others) CA 91%
Agency 5%
Others 4%
CA 89%
Agency 8%
Others 3%
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