IndiaFirst Life Insurance started operating in 2009 as a private life insurance company.
The Indian private life insurance firm was one of the fastest growing regarding New Business IRP in fiscal 2022. It recorded 27.3% CAGR growth in New Business in IRP for the 5-year period ending in fiscal 2022, against the private life insurance segment’s growth of 13.9% CAGR.
IndiaFirst Life Insurance is backed by Bank of Baroda - the third-largest public sector bank, and Union Bank of India, the fifth-largest PSU bank. It primarily operates through the expansive bancassurance network, which contributed 91.34% of New Business IRP in fiscal 2022.
IndiaFirst Life Insurance Company Limited IPO Details
India First Insurance IPO is a combination of fresh shares worth Rs. 500 crore and an offer for sale of 14 crore equity shares from selling shareholders. It is a book building IPO, however, the India First Insurance IPO price band is not yet confirmed.
IndiaFirst Life Insurance Company Limited IPO Objective
The key objectives of the IPO are the following.
- The company proposes to utilise the net proceeds from fresh issues to support the solvency level.
Should you invest in IndiaFirst Life Insurance Company Limited?
Here are a few key reasons to consider before investing in the IPO:
- It offers a diversified product portfolio, catering to its customers’ life insurance needs through various stages of life.
- IndiaFirst has signed an exclusive bancassurance agreement with BOB and a non-exclusive agreement with the Union Bank of India.
- New Business IRP through emerging channels has increased at a CAGR of 27.51% from FY 2020 to 2022.
- Its product portfolio includes participating and non-participating life insurance and savings products.
Competitive Peers
The other players in the segment as recognised by the company are SBI Life Insurance Company Ltd., HDFC Life Insurance Company Ltd., and ICICI Prudential Life Insurance Company Ltd.
Noteworthy Highlights of IndiaFirst Life Insurance Company Limited
- The Embedded Value (EV) of IndiaFirst insurance has increased from Rs. 1,681.20 crore in 2021 to Rs. 1,865.10 crore in 2022. The registered growth rate is 10.94% CAGR.
- The contribution of non-participating products increased from 15.52% of our New Business IRP in fiscal 2020 to 49.55% in fiscal 2022.
Company Financials
| Particulars | Year ending on June 30, 2022 (₹ million) | Year ending on March 31, 2022 (₹ million) |
|---|---|---|
| Net premium Earned | 8,735.16 | 49,852.05 |
| Income from Investment | 2,037.91 | 17,291.44 |
| Net Benefits Paid | 4,494.12 | 58,894.01 |
| Surplus | 234.12 | 3,216.17 |
| Profit After Tax | 418.27 | 2,816.20 |
Know before investing
Strengths
3It is one of India's fastest-growing life insurance companies, with a significant market share gain.
It operates through an expansive network of bancassurance of BoB and Union Bank of India.
The company offers a balanced and diversified product portfolio consisting of participating and non-participating products.
Risks
3Any change in the bancassurance agreement can lead to a decline in performance standards.
Adverse persistency metrics or an adverse variation in persistency metrics could adversely affect the financial condition of the company.
The insurance industry is highly regulated, and failing to comply with the regulations can result in significant penalties.
