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Informist, Thursday, Aug. 7, 2025

--LIC: Aim to grow profitability in double digits this yr 

--LIC: Will need IRDAI's permission to acquire stake in health insurace co 

--LIC: Haven't approached IRDAI yet about acquiring health insurance co 

--LIC: Will take call on composite insurance after insurance bill is passed 

--LIC: Awaiting govt to announce stake offload plan for LIC 

--LIC: Scope to increase non-participating pdts, focussing on it 

MUMBAI/NEW DELHI – Life Insurance Corp. of India aims to grow its quarterly profits in double digits in the current financial year, the senior management of the company said in a media call after its June quarter earnings, which showed the insurer's profit grew only 5% on year and fell 42% on quarter in Apr-Jun.

"We are not normally giving any guidance, we would like to keep increasing our profitability to reach a respectable figure, certainly during the end of the year," the management said. "We would certainly like to have it in double digits in any case." LIC posted a net profit of INR 109.87 billion in the June quarter, according to the quarterly financial results released post market hours Thursday. 

The company plans to focus on increasing non-participating products to account for about 40-50% of total and settle at a healthy ratio of participating and non-participating products, the management said, adding that a 40:60 ratio of non-participating to participating products would be optimal.  

The share of company's participating products on annual premium equivalent basis was 69.66% and stood at INR 49.19 billion, while non-participating products contributed 30.34%, amounting to INR 21.42 billion for the quarter ended June. The non-participating annual premium equivalent registered a growth 32.63% on year.

Additionally, the insurance behemoth wants to foray into the health insurance business. The company's initial plan was to acquire a stake in another health insurance company. However, LIC now has another option as the insurance bill includes a provision for a composite licence. A composite licence allows an insurance company to provide multiple types of products, such as life, general, or health, under one roof.

The management said that it is considering both options, and hasn't made a final decision yet. The company will wait for the insurance bill to be passed in Parliament before finalising a decision, the management added. The government is yet to table the bill in Parliament. 

Alternatively, LIC can acquire a stake in another health insurer up to a certain specified limit without permission from the Insurance and Regulatory Development Authority of India, and to increase its stake beyond the cap it would require the regulator's approval. It hasn't approached the regulator yet, the management said. 

LIC is also waiting for the government to announce a plan for offloading its stake in LIC for the insurer to meet the Securities and Exchange Board of India's norm of minimum public shareholding of 25% for all listed companies, the management said. The government needs to lower its stake in LIC by 6.5% by 2027.

On Thursday, shares of Life Insurance Corp. of India closed 0.9% lower at INR 885 on the National Stock Exchange.  End

Reported by Gowri Lakshmi and Krity Ambey

Edited by Deepshikha Bhardwaj

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