03 May , 2022 By : monika singh
Private life insurer Ageas Federal Life Insurance on Monday declared a net profit of Rs 94 crore for the year ended March 31, 2022, compared with Rs 119 crore for the year-ago period, registering a 21% year-on-year fall due to a sharp rise in Covid-related claims. With global insurance giant Ageas planning to raise its stake in Ageas Federal Life (AFLI) to 74%, the company is bullish on its performance in the current financial year.
The insurer’s total premium grew 13% y-o-y to Rs 2,207 crore in FY22, from Rs 1,959 crore in the previous fiscal. Individual new business premium witnessed a growth of 27% y-o-y at Rs 639 crore, compared with Rs 504 crore. Renewal premium during the period under review grew 5% y-o-y to Rs 1,391 crore, against Rs 1,327 crore for 2020-21, the company said in a release.
Vighnesh Shahane, MD & CEO, told FE that the company had settled Rs 83 crore of Covid claims net of reinsurance during FY21. In FY22, it settled Rs 156 crore of claims. “The net profit for the last fiscal reduced largely because of increased claims due to Covid. While other (life insurance) companies actually had losses, we managed to declare a profit for the 10th year,” Shahane said.
AFLI, which commenced operations in 2008, first reported profits in its fifth year, and has since reported 10 consecutive years of profit.
For the company, value of new business margin for FY22 improved by 9% to 22.39%. “This was the full financial year when we operated as Ageas Federal Life Insurance. Before this, we were IDBI Federal Life Insurance,” Shahane said, adding the proposed sale of IDBI Bank’s remaining 25% stake in the insurance company to Ageas Insurance International NV is expected to get the required regulatory approvals in the next two-four months.
“I think the transaction should be complete in the next two-four months,” Shahane said. After the regulatory approvals, Ageas would become the first foreign global life insurer to acquire 74% stake in an Indian life insurance entity. Following IDBI Bank’s entire stake sell, Ageas will hold 74% stake in AFLI and Federal Bank will maintain its 26% stake.
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