Private life insurer Ageas Federal Life Insurance on Monday declared a internet revenue of Rs 94 crore for the yr ended March 31, 2022, in contrast with Rs 119 crore for the year-ago interval, registering a 21% year-on-year fall as a result of a pointy rise in Covid-related claims. With international insurance coverage big Ageas planning to lift its stake in Ageas Federal Life (AFLI) to 74%, the corporate is bullish on its efficiency within the present monetary yr.
The insurer’s whole premium grew 13% y-o-y to Rs 2,207 crore in FY22, from Rs 1,959 crore within the earlier fiscal. Individual new enterprise premium witnessed a progress of 27% y-o-y at Rs 639 crore, in contrast with Rs 504 crore. Renewal premium throughout the interval below evaluation grew 5% y-o-y to Rs 1,391 crore, in opposition to Rs 1,327 crore for 2020-21, the corporate mentioned in a launch.
Vighnesh Shahane, MD & CEO, instructed FE that the corporate had settled Rs 83 crore of Covid claims internet of reinsurance throughout 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 mentioned.
AFLI, which commenced operations in 2008, first reported earnings in its fifth yr, and has since reported 10 consecutive years of revenue.
For the corporate, worth of recent enterprise 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 mentioned, including the proposed sale of IDBI Bank’s remaining 25% stake within the insurance coverage firm to Ageas Insurance International NV is predicted to get the required regulatory approvals within the subsequent two-four months.
“I think the transaction should be complete in the next two-four months,” Shahane mentioned. After the regulatory approvals, Ageas would turn out to be the primary overseas international life insurer to accumulate 74% stake in an Indian life insurance coverage entity. Following IDBI Bank’s complete stake promote, Ageas will maintain 74% stake in AFLI and Federal Bank will preserve its 26% stake.
Source: www.financialexpress.com”