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IDBI Federal Insurance records 31% rise in net profit in FY2018-19

PW Bureau

IDBI’s insurance arm clocked a growth of 8 percent in its total premium at Rs 1,933 crore in FY2018-19 as opposed to Rs 1,783 crore in the previous fiscal

New Delhi: IDBI Federal Life Insurance posted a 31 percent rise in net profit, taking the figure to Rs 133 crore in financial year 2018-19 as opposed to Rs 101 crore in 2017-18. This is the seventh consecutive year when the company registered profit since it first declared profit in 2012-13.

8% growth in premium

IDBI’s insurance arm clocked a growth of 8 percent in its total premium at Rs 1,933 crore in FY2018-19 as opposed to Rs 1,783 crore in the previous fiscal, the company said. The growth was primarily attributed to a 19 percent rise in renewals and over 50 percent increase in credit life.

Credit life is a product in which a life insurance policy is being designed to pay off a borrower’s dent in case the policyholder dies.

IDBI Federal Insurance declares dividend of 10%

It announced a maiden dividend of 10 percent as recommended by the board. However, this would be subject to approval in the annual general meeting.

“During the year, IDBI Federal experienced a robust growth of 32 per cent in (value of new business premium) driven by a single-minded focus on adapting our product mix to the changing needs of customers,” it said.

Insolvency margin

IDBI also managed to maintain an insolvency margin of 334 percent to take care of the interests of policyholders. In July 2018, it was the first new-age life insurance company to make up accumulated losses.