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Informist, Thursday, May 21, 2026

 

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--LIC: Expect double-digit growth in new business premium income FY27
--CONTEXT: Comments by LIC management at post-earnings press conference
--LIC: Effort will be to keep new business margin value above current levels
--LIC: Saw big skew towards investments in state bonds vs corp bond in FY26
--LIC: Saw good growth in policies sold in April
--LIC: Looking to earn more rental value from owned properties
--LIC: Have time to decide on selling stake in NSE IPO
--LIC: No urgency in foraying into health segment
--LIC: Will take a call on selling stake in NSE at right opportunity
--LIC: Will ensure NSE IPO is successful
--LIC: Govt to take call on selling stake in co, will support them
--LIC: Will focus on business growth rather than mkt share

 

NEW DELHI – The Life Insurance Corp. of India will sell its stake in the National Stock Exchange if it is required to make the exchange's initial public offering successful, the insurer's management said Thursday. The life insurance company will take the decision in this regard at the right time, the management said.

 

LIC is the single largest shareholder in NSE with a 10.7% stake. The company's participation by liquidating its stake in NSE depends on the number of shares the exchange is aiming to go public with, the LIC management said. NSE in Janaury received approval from the Securities and Exchange Board of India for its initial public offer.

 

"We are one of the shareholders. All they have declared is that they have to come up with something around 4.5-5% or whatever it is that is going to come. And it does not require every shareholder to participate in it," R. Doraiswamy, LIC's chief executive officer and managing director, told a press conference after the corporation released its earnings for the March quarter. "So, we are open. If they needed that kind of support from us, we may be there to offer."

 

Asked about the government trimming its stake in the insurance company, Doraiswamy said, "We are working in tandem or in full cooperation to the Government of India." Currently, the market is volatile but the government will take a call "as and when it is possible for them", he said. "We will be fully working" towards it as the regulatory requirements have to be met.

 

Currently, the government holds 96.5% stake in LIC. According to the Securities and Exchange Board of India's Securities Contract (Regulation) Rules, all listed companies, including public-sector companies, need to have a minimum public shareholding of 25%.

 

Earlier in the day, the insurer detailed its March quarter earnings. It reported a rise of over 23% on year in net profit to INR 234.20 billion. Its net premium income for the quarter rose nearly 12% on year and over 31% sequentially to INR 1.65 trillion. The corporation's total income for the reporting quarter was INR 2.77 trillion, up nearly 15% on year. Thursday, its shares closed at INR 800.20 on the NSE, almost flat from Wednesday.

 

For the financial year 2025–26 (Apr-Mar), LIC reported a net profit of INR 574.19 billion, up 19% from FY25. Income from investments rose 10% to INR 4.32 trillion. The state-owned insurer saw a big skew towards investment in state bonds as compared to corporate bonds, the management said.

The company said it saw "good growth" in policies sold in April. Going forward, it expects healthy "double-digit growth" in the new business premium income for FY27, the management said. It will also make efforts to keep the value of new business margin above the current level of 21.2%, the management said.

 

The insurer's market share eased to 56.66% in FY26 from 57.05% a year ago. The managment said it will focus on business growth rather than market share.

 

Asked about asset monetisation, Doraiswamy said it is a "continuous work". The company aims to earn more rental value from properties owned by it, he added.

 

The management indicated a change in its plan to foray into the health insurance segment. Doraiswamy said there is "no urgency" to do so. The company sees the health insurance segment as a "tough market", the management said. "Lending our name to some industry by which the total brand value of LIC should improve, that's the idea we are looking at," Doraiswamy said. "So we look at possibilities, but we are in no urgency to do that."  End

 

Reported by Shweta and Shubham Rana

Edited by Rajeev Pai

 

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