Private life insurer Ageas Federal Life Insurance's net profit for FY21 dropped 20 percent year-on-year (YoY) to Rs 119 crore.
The total premiums were, however, up 6 percent YoY at Rs 1,959 crore in FY21. The value of new business (VNB) margin stood at 20.6 percent in FY21 compared to 24.5 percent a year ago.
The insurer, in a statement, said the growth was driven by a 24 percent YoY rise in individual new business premium to Rs 504 crore and a 4 percent YoY rise in the renewal premium to Rs 1,327 crore.
The board has recommended a final dividend of Rs 104 crore, at a rate of dividend of 13 percent, subject to approval at the ensuing Annual General Meeting.
During the year, Ageas Life said the company ensured that the lockdown across various places in the country did not impact the claims settlement turnaround. The average turnaround time from the date of intimation of the claim to the date of settlement for individual death claims was nine days.
Vighnesh Shahane, MD & CEO, Ageas Federal Life Insurance said, "Our profitability is borne out of continued efficiencies in achieving improved persistency, rationalisation in costs, a decline in surrenders, and healthier solvency margin."
During the last financial year, the company announced that the joint venture life insurance entity has been rebranded to Ageas Federal Life Insurance.This is after Ageas Insurance International NV increasing its stake to 49 percent by acquiring a 23 percent stake from IDBI Bank. Federal Bank holds a 26 percent stake in the company while IDBI Bank’s stake is now at 25 percent.