Aditya Birla Sun Life Insurance presents DigiShield

Aditya Birla Sun Life Insurance presents DigiShield - First-of-Its-Kind Fully Customizable Term Plan

~A hyper-personalized plan to suit individual protection needs~

~Industry first offering of whole life cover with sum assured reduction option~

Aditya Birla Sun Life Insurance (ABSLI), the life insurance subsidiary of Aditya Birla Capital Limited (ABCL), announced a hyper-personalized term plan, ABSLI DigiShield Plan, to cater to the unique protection needs of customers. This single plan will offer multiple plan options, added benefits linked to life stages, joint life protection, critical illness cover and rider options to tailor-make a distinctive protection solution, offering a comprehensive financial safety net for the customers and their loved ones. 

People have various protection needs during different stages of their life and the hyper-flexibility offering of this plan helps to curate a protection strategy that aligns with their specific needs. Besides offering death benefit and acting as an income replacement tool, ABSLI DigiShield plan assists in comprehensive financial planning. 

Unlike traditional term plans, this plan allows a customer to enjoy its benefits during their lifetime through the survival benefit option. Further, it provides a unique flexibility to reduce the sum assured at a pre-defined retirement age, allowing customers to align their cover as per their outstanding liabilities and the life stage. This whole-life cover with sum assured reduction feature is a first-of-its kind in the life insurance industry which offers life coverage until age 100 years.

Along with these fully customizable offerings, this plan also provides various premium paying terms, policy tenures and death benefit pay-out options to satisfy unique customer requirements. This holistic plan mitigates liabilities, provides protection to loved ones, and supports retirement and legacy goals.

Commenting on the launch, Mr. Kamlesh Rao, MD & CEO, Aditya Birla Sun Life Insurance, said, “Recent uncertain times have generated a need for a resilient financial cover with customized offerings. 2021 would be the year of hyper-personalization and at ABSLI, we aim to offer solutions which evolve with changing needs and lifestyles of our customers. ABSLI’s DigiShield Plan is one of a kind offering that stands as testimony to our customer-centric ethos. Now, our new-age customer will be empowered to tailor make a comprehensive solution through the various personalization features and carve a protection policy which is a precise fit for self and family”.

 Unique benefits offered by the DigiShield plan:

·         Sum assured reduction option with whole life cover – This option offers life coverage until age 100 years and also allows the customer to reduce the sum assured by 50% or 25% at a pre-determined retirement age. This unique flexibility allows customers to choose high sum assured in their earning years and reduce their life cover during their retirement years. It makes the offering ideal for salaried customers or people who have to manage their liabilities effectively. 

·         Survival income on attaining Age 60 years - This option provides monthly income to the customer on attaining Age 60 years and takes care of retirement income needs. Life cover continues throughout the policy term and the nominee is paid lumpsum benefit of sum assured, less survival benefits paid, in case of any unfortunate event. This option ensures need for life protection & retirement income is taken care under one plan.

·         Income Benefit option – This option provides support to the dependent members of the  customer in his/her absence by replacing the lost income with a 1.25% of Sum Assured as fixed monthly income or increasing monthly income at 5% (simple) per annum for a period of 10/15/20 years, as chosen by the customer at inception of the policy.

·         Level cover option – The nominee is paid the absolute amount equal to the sum assured on death, in lump sum.

• Customize the plan based on your needs: DigiShield plan offers 10 plan options with a variety of benefits to suit every individual’s requirements. Some of the options that one can select from are:

·         Type of cover (level & reducing)

·         Tenure of the policy (To Age 85 & Whole Life)

·         Premium payment term (Single, Limited & Regular)

·         Death benefit pay-outs (Lump sum, Monthly income and Lump sum plus Monthly income)

• Accelerated Critical Illness (ACI) benefit: Secured protection against 42 critical illnesses by opting for the Accelerated Critical Illness (ACI) Benefit option with additional premium payment.

• Cover for your spouse: Now one can cover their partner’s life under the same plan by availing of the Joint Life Protection option.

• Multiple rider benefits: A comprehensive protection plan can be created by opting for additional protection through multiple riders by paying additional premiums.

• Enhance protection cover without medical: One can avail flexibility to increase the cover amount on specific events like marriage, childbirth or on availing house without undergoing fresh medical or underwriting, just by intimating us on any of these events.

Aditya Birla Capital reports results for

Aditya Birla Capital reports results for the quarter ended 30th June, 2020

Resilience across businesses despite lockdown, with focus on balanced growth, liquidity, technology enhanced processes and cost control

▪ 91% of overall Aditya Birla Capital branches operational with strict health protocols

▪ Consolidated Net Profit at Rs. 198 Crore (grew 1.4 times over previous quarter)

▪ Consolidated Revenue: Rs. 4,293 Crore (grew 9% year on year)

Aditya Birla Capital Limited (“The Company”) announced its unaudited financial results for the quarter ended 30th June 2020.

The Consolidated Revenue of the Company grew 9% year on year to Rs. 4,293 Crore. The Company,
through its subsidiaries, continued its consistent delivery of profit through its diversified business model.

The consolidated profit after tax (after minority interest) grew 1.4 times over Q4 FY20 to Rs. 198 Crore, marked by resilience across businesses. This is after providing an additional Rs. 62 Crore as COVID provisions in its lending businesses in Q1 FY21.

With 91% of its branches operational with strict health protocols, the company looked to normalise its perations through Q1 FY21. The Company will continue to monitor developments in the market as
lockdowns get lifted. Aggregated2 operating expenses (excluding volume linked and Health Insurance business) have reduced 10% over the last quarter.

The performance highlights of the key subsidiaries of Aditya Birla Capital Ltd. were:
Lending:

• Overall lending book (NBFC and Housing Finance) stood at Rs. 58,073 Crore

• Maintained Core operating profit in NBFC and Housing Finance despite slow recovery under
lockdown

• Lending book is backed by well-matched asset and liability mix with adequate liquidity

• Raised over Rs. 1,500 Crore of long-term funds during the quarter

• Continue to have strong focus on quality of book with reduced ticket sizes across the board
ramp up of activity, currently 100% branches operational

o Maintained Core operating profit with pre provision operating profit at Rs. 392 Crore, during the quarter

o Additional COVID related provisions of Rs. 50 Crore in Q1 FY21

o Cost to income ratio reduced by 223 bps from 33.5% in Q4 FY20 to 31.3% in Q1 FY21

o The Net profit after tax stood at Rs. 140 Crore vis-à-vis Rs. 137 Crore in previous quarter
Housing Finance business

o Loan book at Rs. 12,134 Crore, with 96% retail

o Net interest margins expanded by 29 bps to 3.27% over previous year

o Maintained core operating profit with pre provision operating profit at Rs. 52 Crore

o Additional COVID related provisions of Rs. 12 Crore in Q1 FY21

o Strong drive towards technology deployment to drive sales and customer engagement with 85% of sourcing digital in July ’20

o The Net profit after tax for the quarter stood at Rs. 28 Crore vis-à-vis Rs. 21 Crore in Q4 FY20 and Rs. 27 Crore in Q1 FY20

Asset Management

• Overall closing assets under management grew by 8% to Rs. 2,17,643 Crore from March 20 to June 20

• Closing equity AUM grew by 19% to Rs. 78,017 Crore from March 20 to June 20

• Keeping its continued focus on building retail customer franchise, the retail AAUM grew by 12% over the last quarter; while the SIP AUM increased by 27%, quarter on quarter

• Maintained profitability with Profit before tax/AAUM at 24 bps vis-à-vis 22 bps in Q4 FY20

• Digital transactions account for 94% of overall transactions as compared to 81% in previous quarter
Insurance:

• Total gross premium of life insurance and health insurance grew 38% year on year to Rs. 1,936 Crore


Life Insurance business

o Individual First Year Premium (FYP) grew 5% year on year to Rs. 309 Crore, significantly ahead of industry year on year degrowth of 23%

o Consistent improvement in quality with 13th month persistency by 200 bps, year on year, to 81%, from 79%

o Strong focus on digital with 96% individual business sourced digitally

o Maintained gross margin at 33.1% despite falling interest rate scenario

o Sharp reduction in Opex to premium ratio, year on year, from 23.1% to 16.3% growth of 16% for Stand Alone Health Insurers, with Retail business contributing 73%

o Covering 8.9 million lives out of which over 5 million lives covered through micro and byte size products

o Business continues to build scale with significant improvement in combined ratio at 132% vs. 146% in the previous year

o Robust digital enablement with 98% digital issuance in Q1 FY21 vs. 93% in FY20 and digital renewals at 92% vs. 65% in previous year

Other businesses

• Profit before tax grew 64% year on year to Rs. 41 Crore from Rs. 25 Crore

o General Insurance broking profit before tax grew 20% year on year to Rs. 29 Crore driven by technology adoption

o ARC platform continues to scale up with AUM at Rs. 2,500+ Crore

Aditya Birla Capital has a diversified portfolio of businesses catering to the lifetime money needs of its customers. This diversification also allows the company to capture opportunities in different segments of the market and deliver consistent growth.