Tuesday, 30 June 2020

Exide Life Insurance in FY 2019-20 delivers


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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