IndiaFirst Life Insurance FY21 results: Firm back in the black, posts Rs 30 cr profit

NEW DELHI: IndiaFirst Life Insurance Company Ltd returned to profit with Rs 30 crore in the kitty in 2020-21 with out compromising on its solvency or the have to further capital, its MD & CEO R M Vishakha stated.

“We posted Rs 30 crore annual profit after tax in 2020-21 after a loss of Rs 96 crore in the preceding year. In 2019-20, there was a blip because of the IL&FS provisioning. We were already profitable for the past five years.”

“It is commendable that despite a pandemic year, we made it back (to profit) without any additional increase of capital, without any adverse impact on solvency. We managed our liquidity and our business and we became profitable (again),” Vishakha informed PTI.

The personal sector insurer, promoted by Bank of Baroda,

and Warburg Pincus, paid Rs 388 crore in general claims throughout the yr, up by practically 35 per cent from a yr in the past’s Rs 253 crore, she stated.

“We paid Rs 45 crore for COVID-19 claims across group and individual policies. Despite rise in claims due to COVID-19 claims, we made profits in 2020-21,” Vishakha stated.

She stated 2020-21 has been actually good for IndiaFirst Life Insurance in phrases of attaining a whole holistic progress.

“We showed a 300 basis point increase in our 13 month persistency, so the persistency numbers went up,” she stated.

In phrases of insurers’ enterprise, she stated there’s a fundamental distinction between final yr and the present yr.

“I think what happened last year was we lost the last week of March. So, the year-end did not close well and it wasn’t normal closing of business. Whereas this year, the advantage is that we had the normal closing of business and the severity of the virus started only on April 15,” Vishakha stated.

She added that the April-June quarter usually has about 13-14 per cent enterprise. “Last year, we did about 8 per cent of the business. So, we hope to be doing approximately 9-10 per cent of the business in Q1. So, we should be able to do well on that (front).”

IndiaFirst Life launched a number of merchandise filed and have been authorized by Irdai.

“And, we might roll out these merchandise that helped us out to make sure that we give our clients the coverage they want.

“Then from our marketing perspective, we had a lot of campaigns, we even sponsored a movie (short commercial) that got a tremendous amount of visibility through the marketing initiatives,” stated the official.

On requested about enhance in premium, she stated the firm has not elevated premium in its financial savings merchandise or common time period merchandise.

“The premium has been elevated solely in the e-term merchandise due to the modifications in the premium charges by the reinsurers.

“So, we had to change the premium but only in online term products on account of re-insurance premium. In all our other products, we did not change the premium,” she added additional.

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