Surging June-quarter earnings at the Life Insurance Corporation of India ( LIC ), the country’s biggest institutional investor and the second-largest state entity by market value, surprised Dalal Street, with the insurance market leader showing minimal impact of adverse tax rules on high-value non-par products. Chairman Siddhartha Mohanty tells Shilpy Sinha and MC Govardhana Rangan that the insurer is undergoing a digital transformation it believes will help achieve the social objective of extending life cover to the uninsured, and wrest back market share in the process. Edited excerpts: Last quarter (April-June) earnings soared from a year ago. What drove the growth and is it sustainable? This is sustainable and profit is likely to increase in the coming quarters. We have reported ₹9,543 crore, of which ₹7,491 crore was accretion on available solvency transferred. Even if we remove this, it has grown to ₹2,050 crore. But the overall policy sale has slowed, denting market share. What happened? After listing, we have had a directional change in our product mix. Participating products are dominant in LIC’s product mix. We have sensitised our field force in the best interest to sell non-par products that yield better margins. Share of non-par has gone […]
Click here to view original web page at economictimes.indiatimes.com
