LIC in talks with banks to ramp up partnerships, says MD Jagannath

The insurer, in the first six months of FY24, sold 80.60 lakh policies versus 83.59 lakh policies in corresponding period last year.

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India's largest insurer, the Life Insurance Corporation of India (LIC) is in talks with banks to ramp up its bancassurance channel business, said Managing Director M Jagannath.

“We are looking to increase partnerships to enhance our bancassurance channel and talks are going on with some banks,” Jagannath said at the press conference after the company's Q2FY24 results.

In the April-June FY24 quarter, the country’s largest insurer partnered with two new banks, viz., J&K Bank and Saraswat Urban Cooperative Bank.

Jagannath further highlighted that LIC's existing partnerships with some banks have given very good results. “Our existing partnerships with banks have given good results. We will enhance these as well,” he said.

Also read: LIC Q2 Results: Net profit falls 50% to Rs 7925 cr, net premium income at Rs 1.07 lakh cr

LIC Q2

The insurer on November 10 reported a 50 percent fall in net profit at Rs 7,925 crore for the quarter ended September 30, 2023. The insurance behemoth had reported a net profit of Rs 15,952 crore in the year-ago period.

The insurer, in a press release said that it had changed its accounting policy in September 2022 regarding transfer of amount (Net of Tax) due to which YoY profit figures cannot be compared.

The drop in profit was largely due to the fall in the net premium income. For Q2FY24, net premium income stood at Rs 1.07 lakh crore, falling by 19 percent from Rs 1.32 lakh crore in the year-ago period.

The insurer's gross non-performing assets (GNPAs) stood at 2.43 percent as against 5.60 percent in the previous year. Its net NPA remained unchanged from the year-ago period.

The value of new business (VNB) for the six-month period ended September 30, 2023, was Rs 3,304 crore as compared to Rs 3,677 crore for the six month ended September 30,2022. The net VNB margin for the same period remained flat at 14.6 percent.