As Indian life insurers prepare to shift to IFRS-based reporting over the next 2 years, the focus is expected to move beyond headline premium growth to the quality and sustainability of earnings. Kamlesh Rao, MD and CEO of Aditya Birla Sun Life Insurance (ABSLI), said the accounting transition will significantly change how growth and margins are reflected in financial statements.
“Today we report under Indian GAAP, but when we move to IFRS in about 2 years, growth with maintained or expanded margins will reflect very healthily under the IFRS regime for the life insurance business,” Rao said in an interaction with a financial publication. He explained that insurers combining sustained compounding with margin discipline will see their financial performance presented more transparently under the new framework. According to him, the IFRS shift will reward companies that balance expansion with profitability.
ABSLI currently manages assets of around Rs 1.10 lakh crore and operates with a diversified portfolio across institutional and retail segments. Of the total assets, about Rs 27,000-28,000 crore comes from group business, while Rs 80,000-82,000 crore is from individual life insurance. “We are ranked fourth in group life and seventh in individual life,” Rao said, highlighting the company’s dual growth strategy. The group segment offers scale and stability through institutional and credit-linked covers, while the individual segment drives long-term value through persistency and margin expansion. “Our focus is steady growth with expanding margins,” he added.
On claims management, Rao said the company maintains strong settlement ratios with faster turnaround and disciplined underwriting. As the portfolio mix evolves, especially in credit life and group segments, claims experience is closely monitored to protect margins while maintaining customer trust. He emphasised that underwriting discipline and proactive claims management remain central to profitability in a changing regulatory and product landscape. With regulatory resets, evolving product economics and IFRS transition converging, the next phase for life insurers may be defined by earnings quality rather than just premium growth.
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