Ageas Federal Life Insurance reported a 20 per cent drop in its net profit to ₹119 crore in 2020-21 from ₹148 crore 2019-20. Total premium grew by 6 per cent on a year on year basis to ₹1,959 crore in 2020-21 while renewal premium increased by 4 per cent to ₹1,327 crore last fiscal.
“This is the ninth consecutive year of profit for the life insurer since it first declared profit in 2012-13. The growth in total premium was driven by a 24 per cent rise in individual new business premium to ₹504 crore,” it said in a statement.
New business premium
The company also benefited from a 40 per cent growth in individual new business premium from Federal Bank, it said. The private sector insurer’s 13th month persistency was at 86 per cent as of March 31, 2021 as against 83 per cent, a year ago.
“We will continue to ramp up our proprietary distribution channels, while looking to further leverage the relationship with our bancassurance partners,” said Vighnesh Shahane, MD and CEO, Ageas Federal Life Insurance. The board has recommended a final dividend of ₹104 crore, at a rate of dividend of 13 per cent, subject to approval at the Annual General Meeting.