IDBI Federal Q1FY16 Total Premium Growth up by 84% to INR 197 Crores

IDBI Federal Life Insurance, a joint-venture of IDBI Bank, India’s premier development and commercial bank, Federal Bank, one of India’s leading private sector banks and Ageas, a multinational insurance giant based out of Europe, has reported a growth of 84% in Total Premium at the end of the Q1 FY16.

Commenting on the results, Vighnesh Shahane, CEO & Whole Time Director, IDBI Federal, said, “The growth of the company can be attributed to growing new business premium and expanded in-force book. Further the measures to improve frontline sales productivity, quality of business and selling longer tenured products are showing positive impact. Our clear growth strategy combined with a strong execution infrastructure has also helped us maintain best in class persistency, balanced opex ratio and improved renewal income.”

The company’s New Business Individual Premium grew from 37 crore recorded in Q1 last year to 91 crore this year; reporting a growth of 145%. The company’s ranking improved to 11 from 16 for YTD Individual Life New Business Premium. The total market share amongst private players rose from 1.15% in Jun’14 to 2.37% in Jun’15 for YTD Individual Life New Business Premium. The company’s total premium grew at 84% against the same period last year. The company recorded a 19% renewal premium growth. IDBI Federal’s APE also improved from 41 crore recorded last year to 60 crore, a growth of 47%.

Apart from a superior business performance, the company also introduced a number of customer centric measures. One among them was the 8 days Claims Guarantee, where the company aims to settle the claims in just 8 working days. In case if the company fails to do so, it pays an interest of 8% per annum on the death claim amount for each day of delay beyond 8 working days. Ever since the initiative was launched in July 2014, the Company has not had to pay any penalty/interest on this count. For complaints resolution as well, the company maintains a turnaround time (TAT) of 8 days against the IRDAI norm of 15 days. The result of these initiatives is that the company’s 13th month persistency stands at a healthy 76%.

IDBI Federal has plans to strengthen some of its key areas like brand salience, technology & digitization, distributor engagement and increasing unique lives. In its effort to make its brand presence strong, it has committed to associate with various sports and fitness associations, as well. The most recent among them is the MCA-IDBI Federal Bowling Foundation to partner the discovery and the nurturing of bowling talent in the country.