European insurance major Ageas is in talks for a possible stake hike in IDBI Federal Life Insurance, a joint-venture between IDBI Bank (48 per cent), Federal Bank (26 per cent), and Ageas (26 per cent).

According to Vighnesh Shahane, CEO and whole-time Director, IDBI Federal Life, at least two independent agencies — Tower Watson being one — have been roped in for valuation.

Ageas has the option of hiking its stake to 49 per cent, either in one go or in tranches.

“There are talks of Ageas increasing its stake in the venture. How soon it will be only time will tell,” he said.

Options for Ageas’ stake hike may either be through a transfer of assets or fresh equity infusion. “Discussions are still on in this regard,” Shahane added.

The Mumbai-headquartered private life insurer reported a total premium of ₹197 crore in the first quarter of this fiscal. Total premium collections in FY15 stood at ₹1,070 crore.

Business channels

Nearly, 70 per cent of its business comes from the bancassurance (selling insurance policies through banks) model; the other channels, including agency, account for the remaining 30 per cent.

Meanwhile, IDBI Federal is looking to grow its agent activations to 13-15 per cent — that is, out of every 100 agents at least 13 to 15 will be doing at least one new policy a month.

Currently, it has 12,000 agents with activations between 10 and 12 per cent.

“Instead of a mere increase in the number of agents, our idea is to increase activations,” he added.

The company, however, will continue its focus on individual business; group business is expected to remain 20-25 per cent (of the total premium collections) this fiscal.

Group insurance business accounted for around ₹200 crore for the insurer in FY15 (out of a total of ₹1,070 crore).

Currently, the insurer has 12 products across various categories.

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