IDBI Federal Life expects flat growth in premium

KOLKATA: IDBI Federal Life Insurance, a three-way JV between IDBI, Federal Bank and Aegis, expects a flat growth in new business premium in the current financial year, a company official said.

"Last fiscal, the growth was 15 per cent. We are expecting a growth between 12 per cent and 18 per cent this fiscal," CEO and whole-time director of IDBI Federal Life, Vighnesh Shahane, said.

This, he said, was mainly due to the fact that the organisation has been going through a bit of uncertainty at the moment.

While IDBI holds 48 per cent, Federal Bank and Aegis hold 26 per cent each in the company.

The insurance behemoth LIC has completed the acquisition of 51 per cent stake in IDBI Bank.

With a market share of 2 per cent in new business income, Shahane said 20 per cent to 25 per cent of the business was from individuals.

Stating that eastern India was a good market for the insurance company, he said it was the highest in terms of premium income.

Term policies constituted 5-6 per cent of the overall sales, adding that the target was to take it to 10 per cent by the end of the fiscal.