Life Insurance Corporation of India (LIC) has reported a 31% year-on-year jump in consolidated profit, driven by strong performance in its core business, investment income, and effective cost control, according to Managing Director R. Doraiswamy.
The insurer said premium growth was muted due to product restructuring under the new IRDAI master circular, but it remains focused on profitability and expense rationalisation. Doraiswamy added that LIC expects a strong second half (H2) as affordability improves following the GST cut on insurance premiums.
The company’s non-participating (non-PAR) share surged to 36%, up sharply from below 10% at the time of its IPO, reflecting the growing success of guaranteed, customer-centric products. LIC aims to maintain a balanced PAR and non-PAR mix with new, need-based products.
Doraiswamy emphasized that LIC has no plans to reduce commissions for agents post-GST, reaffirming that the corporation is committed to protecting intermediary interests. To offset the loss of input tax credit, LIC plans to rely on top-line growth and expense control.
Key highlights:
- VNB margin at 17.6%, expected to improve further in H2.
- Bancassurance and alternate channels contribute over 7% of individual premiums; LIC targets a double-digit share in the future.
- New partnerships formed with AU Small Finance Bank, RBL Bank, and Canara Bank to expand distribution.
- Focused on long-term investment and value creation for policyholders, adhering to IRDAI norms across asset classes.
- GST benefits are being passed on to customers to keep insurance affordable.
Doraiswamy concluded that LIC continues to prioritise sustainable, profitable growth and long-term returns over short-term gains.
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