Ageas Federal Life Insurance has set a goal of increasing new business premiums by 40% in the next three years, following the resolution of ownership concerns, according to a top company official.
June 10, 2022 / 05:41 PM IST
Ageas Federal Life Insurance has set a target of growing its new business premium by 40 per cent in the next three years, as uncertainties over the ownership issues settled down after its Belgian partner decided to buyout IDBI Bank’s stake, a top company official said. After the approvals from Irdai and Competition Commission, the city-based life insurer will become the first in the segment to have maximum foreign ownership of 74 per cent. Currently, only non-life player Future Generali has 94 per cent foreign ownership. After the approvals from Irdai and Competition Commission, the city-based life insurer will become the first in the segment to have maximum foreign ownership of 74 per cent.
Ageas Federal Life was launched in 2007 as a three-way joint venture between Ageas Insurance International, Federal Bank and IDBI Bank — which initially held 48 per cent and pared 23 per cent in December 2020 and the rest 25 per cent in March 2022. In FY21, Ageas increased its stake to 49 per cent by acquiring 23 per cent from IDBI Bank and in March 2022 the Belgian partner again agreed to buy the remaining 25 per cent stake of the LIC-controlled lender, taking its ownership to 74 per cent and the rest of the equity will continue to be held by the Kochi-based Federal Bank.
The company is expecting the stake sale to be closed in the second half of the year. “We have had excellent two years with very high growth rates. In FY22, our new business premium grew over 40 per cent and with the ownership issues behind us, we are on an exponential growth path and hope to continue with 35-40 per cent growth in new business premium over the next three years,” Vighnesh Shahane, managing director and chief executive of Ageas Federal Life, told.