IDBI Federal Life Insurance has posted a maiden profit of Rs 9.24 crore for financial year 2012-13, its fifth year of operation.
Focus on long term traditional life insurance products and lower costs, helped the life insurer report a profit in FY13 as against a loss of Rs 69.8 crore during the previous financial year.
According to the life insurer, its new business premium collection grew by 23 per cent during the last financial year compared to a negative growth of 15 per cent reported by the industry.
“We have been able to grow at a time when the industry is seeing falling margins and a decline in new business premium collection. We will continue to focus on traditional products with an average premium paying term of more than 12 years,” said G.V. Nageswara Rao Managing Director and Chief Executive Officer of IDBI Federal Life insurance.
Currently, long term traditional products account for more than 83 per cent of the insurer’s product portfolio.
The life insurer is eying a similar growth rate in terms of new business premium collection in the current financial year, Rao said.
deepa.nair@thehindu.co.in