IDBI Federal Life Insurance

Top private insurance firms shed 447 bps as national insurer gets aggressive in group biz

Profits would have been higher if not for aggressive provisioning: IDBI Bank CEO

With this, Ageas will hold 49% in the insurance venture, which is being rebranded as Ageas Federal Life Insurance Company

Private life insurer IDBI Federal Life Insurance on Wednesday announced the appointment of Mathivanan Balakrishnan as its Chief Financial Officer (CFO). Besides, the company also announced elevation of S P Prabhu as its Chief Investment Officer (CIO). Prabhu, who was earlier head of fixed income, will now oversee the management of the company's investment portfolio of Rs 10,000 crore, spread across various asset classes, IDBI Federal Life Insurance said in a statement. As CFO, Balakrishnan will oversee the areas of planning and budgeting, financial accounting & reporting, corporate taxation, investment operations, insurance accounting, audit and statutory compliance.

The insurer witnessed a growth of 8 per cent in its total premium from Rs 1,933 crore in 2018-19

In the last fiscal (FY18), the life insurance company saw a growth of 18 per cent in the new business premium

The company now commands over Rs 7.5 billion in assets under management as against Rs 60.9 billion in FY17

IDBI Federal Life Insurance has appointed global investment bank JPMorgan for the sale of all the stake held by its promoters -- IDBI Bank, Federal Bank and Belgian insurer Aegas."JPMorgan has started the process to find the new buyer(s)," said an insider at one of these promoters, who did not wish to be identified. IDBI Bank owns 48 per cent stake in the life insurance entity. The former has been under stress because of a rise in bad loans and negative return on assets. In May, the Reserve Bank of India invoked its rule on Prompt Corrective Action (PCA) against the bank. Following this, the latter announced it was selling off non-core assets worth Rs 5,000 crore. RBI has mandated a maximum net NPA (non-performing asset) ratio of six per cent under the PCA framework, introduced in April. Breach of this limit can result in the central bank ordering the lender in question to sell assets or cut unsecured exposure."There cannot be a better time for IDBI to monetise its investment in the ..

IDBI Federal Life Insurance expects to wipe out accumulated losses in two years