Exide Life Insurance in FY 2019-20 delivers strong
growth in profits (INR 29 Crs, up 141%) with growth in premiums (INR 3220 Crs,
up 12% vs FY 2018-19)
|
Key
Highlights
·
Profits up by 141%
at INR 29 Crores
·
Gross Written
Premium up by 12% at INR 3,220 Crores
·
Claim Settlement
Ratio improved to 98.15%
·
Assets Under
Management grew by 10% to INR 15,795 Crores
·
Policyholder Bonus
distribution of INR 324 Crores, growth of 13.1%
·
Solvency Ratio at
210% versus regulatory requirement of 150%
|
Exide
Life Insurance, a 100% owned subsidiary of Exide Industries, reported a growth
of 141% in Profits Before Tax (PBT) at INR 29 Crores in the Financial Year ended
March 2020, compared to INR 12 Crores in the previous Financial Year (FY 18-19).
This is the eighth consecutive year in which the Company has reported profits.
The Company has
continued its emphasis on protection products resulting in the protection
business mix increasing from 9% of Annualized Premium Equivalent (APE) in FY
18-19 to 11% in FY 19-20.
The Company has achieved
its highest ever Claims Settlement Ratio at 98.15% and has a healthy Solvency Ratio
of 210% versus the regulatory requirement of 150%.
Continuing with a very
strong track record of declaring bonus payouts to participating policyholders
every year since inception, the Company has announced Policyholder Bonus distribution
of INR 324 Crores in FY 2019-20, a growth of 13.1% over previous FY.
Commenting on the
results, Kshitij Jain, MD & CEO,
Exide Life Insurance said, “Our
primary focus remains value creation for customers and shareholders. Our long
term strategy is to grow new business faster than the industry while continuing
to improve on the quality of business.
Our
commitment to this philosophy has paid off and our business performance has manifested
in superior returns to our policyholders, with us being able to pay bonus to
participating policyholders every year since inception. Needless to say we live
by our promise and our core brand essence of Lamba Saath, Bharose Ki Baat.”
Performance Summary
|
Key Business Drivers
|
Unit
|
Financial Year Ended
|
YoY Growth
|
|
|
Mar 19
|
Mar 20
|
|||
|
Gross
Written Premium Income
|
INR
Cr
|
2,886
|
3,220
|
12%
|
|
New
Business premium (Individual + Group)
|
INR
Cr
|
803
|
889
|
11%
|
|
Renewal Premium (Individual + Group)
|
INR
Cr
|
2,084
|
2,331
|
12%
|
|
Shareholder
Profit (PBT)
|
INR
Cr
|
12
|
29
|
141%
|
|
Active
Policies (individual)
|
In
Lakh
|
15.02
|
15.82
|
5%
|
|
Assets
Under Management
|
INR
Cr
|
14,377
|
15,795
|
10%
|
Policyholder Bonus
Considering the surplus that arose over the Financial
Year in the Participating fund, the Company announced policyholder bonus of INR
324 Crores in FY 2019-20, a growth of 13.1% over FY 2018-19
Solvency Ratio
The solvency
ratio of the Company stood at 210% as on 31st March 2020, compared to the regulatory
requirement of 150%.
Assets under Management
The
Company’s Assets under Management (AUM) recorded a growth of 10% over the last financial
year and stands at INR 15,795 Crores.
Profit Before Tax (PBT)
During FY 2019-20, the Company recorded Profit
Before Tax of INR 29 Crores, compared to INR 12 Crores in FY 2018-19.
Claim Settlement Ratio
The Company continued its growth journey with
‘Individual Claims Settlement Ratio’ improving to an all-time high (since
inception) of 98.15% in FY 2019-20. The Company paid death claims worth INR 213.70
Crores (Individual INR 88.95 Crores and Group INR 124.75 Crores) during the Financial
Year 2019-20.
Renewals and Persistency
The Company achieved 12% growth in individual renewal
premiums at INR 2,221 Crores with improvement in
persistency ratios for 13th month, 25th month as well as
37th month.
Protection Business Mix
The mix of protection
business was further strengthened to 11% of the individual new business premium
(Annualized Premium Equivalent).
Life Insurance Coverage (Sum Assured)
The Company has increased
its total coverage and now has total Sum Assured of INR 3.44 Lakh Crores as on
31st March 2020.
Awards
The Company’s all round
performance on value creation continued with receiving external recognition in
various areas of business. Some of the noteworthy awards won are:
1.
Exide
Life Smart Term Plan voted as Product of the Year 2019
2.
Helmet
Saves CSR initiative won:
a.
Best
BTL campaign for a socio economic program in Masters of Modern Marketing
b.
Brandvid
(Gold) Best brand integration in Music Video
c.
Brandvid
(Silver) – Best brand film for Social initiative
d.
FICCI
best CSR initiative in Life Category
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