IDBI Federal Life posts Rs 9.24 crore net profit in FY 13

MUMBAI: IDBI Federal Life Insurance has achieved a break-even in its fifth year of operation by posting a maiden net profit of Rs 9.24 crore in the last financial year, according to a top company official.

"We have recorded a maiden profit of Rs 9.24 crore in 2012-13. With this, the company has achieved breakeven in the fifth year of its operation by pursuing a profitable growth strategy," Managing Director and Chief Executive Officer of IDBI Federal Life Insurance, G V Nageswara Rao told reporters here.

According to the life insurer, its new business premium grew by 23 per cent during the last financial year compared to a negative growth of 15 per cent reported by the industry.

Similarly, the assets under management for IDBI Federal was up by 24 per cent to Rs 2,732 crore during this period.

As per the life insurer, it expects to see similar growth in new premium in the current financial year.

On the new product launch, the company said it plans to come up with group pension product in the near future.

Referring to capital infusion by parent companies, Rao said, "We have a healthy solvency ratio of 491 per cent against a regulatory requirement of 150 per cent. As we have reached the profit making state, we will not require any further capital infusion."

IDBI Federal Life Insurance is the joint venture between IDBI Bank, Federal Bank and Europe-based insurance company Ageas.

While IDBI holds 48 per cent in the joine venture, Federal Bank and Ageas own 26 per cent equity each in the entity.