Ageas Life set to seek composite licence
Mumbai: Ageas Federal Life Insurance is gearing up to apply for a composite insurance licence as soon as the government notifies the final framework, as the company looks to expand beyond traditional life offerings.
"We will go for health only once composite licensing is in place, given the favourable outlook and predicted profitability," said Jude Gomes MD and CEO Ageas Federal Life Insurance adding that the proposed regime would allow the insurer to scale its product suite more efficiently. A composite licence allows a company to offer both life and non-life services without having to create a separate operating company for each revenue stream.
The insurer, which is 74% owned by the Belgian parent company, has been reshaping its distribution model beyond its long-time anchor partner IDBI Bank. Although IDBI has stopped writing retail business for the company, Ageas Federal delivered 32% growth in Individual APE in FY25.
"We continue to invest in other channels, including fintech partnerships, brokers, and the expansion of our banca distribution network. We have also entered into a strategic partnership with CSB Bank, which is emerging as a strong banca partner," he said.
Ageas Federal plans to double its branch network over the next year as part of a wider expansion plan. The insurer is targeting 3X growth over the next three years and aims to move into the industry's top 10. "There is no threshold premium income target, but the company will continue to grow horizontally and vertically in all aspects," Gomes said.
On the possibility of organisational restructuring once composite licensing comes into effect, the company said it was "too early to comment on structural implications," but noted it remained open to "both organic and inorganic restructuring if it creates synergies and supports growth."
"We will go for health only once composite licensing is in place, given the favourable outlook and predicted profitability," said Jude Gomes MD and CEO Ageas Federal Life Insurance adding that the proposed regime would allow the insurer to scale its product suite more efficiently. A composite licence allows a company to offer both life and non-life services without having to create a separate operating company for each revenue stream.
The insurer, which is 74% owned by the Belgian parent company, has been reshaping its distribution model beyond its long-time anchor partner IDBI Bank. Although IDBI has stopped writing retail business for the company, Ageas Federal delivered 32% growth in Individual APE in FY25.
"We continue to invest in other channels, including fintech partnerships, brokers, and the expansion of our banca distribution network. We have also entered into a strategic partnership with CSB Bank, which is emerging as a strong banca partner," he said.
Ageas Federal plans to double its branch network over the next year as part of a wider expansion plan. The insurer is targeting 3X growth over the next three years and aims to move into the industry's top 10. "There is no threshold premium income target, but the company will continue to grow horizontally and vertically in all aspects," Gomes said.
On the possibility of organisational restructuring once composite licensing comes into effect, the company said it was "too early to comment on structural implications," but noted it remained open to "both organic and inorganic restructuring if it creates synergies and supports growth."
Next Story