The public sector insurance company, IDBI Federal Life Insurance has reported a maiden profit of Rs 9.24 crore for financial year 2012-13.
The company mainly focuses on long term traditional life insurance products and the lower costs helped the company to report a profit in FY13 as against a loss of Rs 69.8 crore during the previous financial year.
According to the life insurer, its new business premium collection increased by 23 per cent during the last financial year.
"We have been able to grow at a time when the industry is seeing falling margins and a decline in new business premium collection. We will continue to focus on traditional products with an average premium paying term of more than 12 years," said Mr. G.V. Nageswara Rao, Managing Director and Chief Executive Officer of IDBI Federal Life insurance.
Currently, long term traditional products account for more than 83 per cent of the insurer's product portfolio.
The life insurer is also eyeing at a similar growth rate in terms of new business premium collection in the current financial year, Mr. Rao said.