Tuesday, June 30, 2020

Exide Life Insurance in FY 2019-20 Delivers Strong Growth of INR 29 Crs, up 141% in Profits


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.”

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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