Mumbai, Apr 29:

Ageas Federal Life Insurance, at Rs 119 crore, has reported  20 per cent year on year(y-o-y) fall in its net profit in Fy 2020-21.

This is the 9th consecutive year of profit for the private life insurer since it first declared profit in FY2012-13.

Despite the challenges posed by the pandemic, Ageas Federal’s total premium of the company rose by 6 per cent year on year Rs 1,959 crore in FY2020-21. The growth was driven by a 24 per cent rise in individual new business premium to Rs 504 crore and 4 per cent rise in renewal premium to Rs 1,327 crore. The life insurer also benefitted from a strong growth of 40 per cent in individual new business premium from Federal Bank.

The Board of the company has recommended a final dividend of Rs 104 crore, at a rate of dividend of 13 per cent. .

Commenting on the financial performance during the year, Vighnesh Shahane, MD & CEO, Ageas Federal Life Insurance said, “FY2020-21 has been a challenging year for the world, and so also for us. During these difficult times due to the Covid-19 pandemic, we have taken several steps to steady the course of onboarding for our customers. Our profitability is borne out of continued efficiencies in achieving improved persistency, rationalisation in costs, decline in surrenders, and healthier solvency margin. We realigned our product suite in tune with the evolving needs of customers during the pandemic, introducing features that made our products more customer-centric and offered policyholders greater flexibility. Understanding and managing risks is of vital importance and the organisation has instituted strong governance practices and an integrated enterprise risk management system to identify, analyse and mitigate risks.”

Shahane further added, “The Covid-19 pandemic is putting us through unprecedented and difficult times, but I am confident we will get through this crisis and emerge stronger. On the business front, we will continue to ramp up our proprietary distribution channels, while looking to further leverage the relationship with our bancassurance partners.

Ageas Federal had a VNB margin of 20.6 per cent and  13th month persistency of 86 per cent.

Its assets under management (AUM) has risen by 24 per cent y-o-y to Rs 12,101 in Fy 2021.