Mumbai, May 3 (IANS) Leading Indian life insurance company, IDBI Federal Life Insurance, on Friday reported a net profit of Rs 133 crore during FY19, a growth of 31 per cent over FY18.
This is the seventh consecutive year of profit for the organisation since it first declared profit in FY13.
According to FinanceXOD, IDBI Federal witnessed an eight per cent growth in Total Premium from Rs 1,783 crore in FY18 to Rs 1,933 crore in FY19 driven by a 19 per cent growth in renewals and over 50 per cent growth in credit life.
The company has also announced a maiden dividend of 10 per cent as recommended by the Board of Directors which will be paid out subject to approval in the AGM.
The organisation’s efforts to provide superior customer service and develop long-lasting relationships have borne fruit with 13th month persistency reaching 86 per cent and the company being in the top quartile of all persistency buckets. Keeping customers’ preferences at the epicentre led to the fifth consecutive year of zero open complaints at the end of FY18-19 in the Integrated Grievance Management System (IGMS) of Insurance Regulatory and Development Authority of India (IRDAI).
The average turnaround time (TAT) in resolving complaints is below two days which is among the best in the life insurance industry and much lower than the industry average of six days.
The surrender ratio of 2.15 per cent in FY19 is among the lowest in the industry. Through the use of analytics and the implementation of robust risk mitigation measures, our claims are among the lowest in the industry.
During the year, IDBI Federal experienced a robust growth of 32 per cent in value of new business-driven by a single-minded focus on adapting our product mix to the changing needs of customers. 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.
Vighnesh Shahane, MD and CEO, IDBI Federal Life Insurance said: “In FY2018-19, 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.”