Insurance behemoth Life Insurance Corporation (LIC) has lined up 3-4 product launches in the coming months with a view to achieve double-digit growth in new business premium in the current financial year.
New Business Premium (NBP), a key performance indicator for insurance companies, refers to the premium acquired from new policies sold by an insurance company within a specific reporting period.
"We are projecting double-digit growth over the last year. We are going to achieve that because a recent trend is showing uptick in individual retail business. In order to further reinforce our commitment, we are going to launch some new attractive products," LIC Chairman Siddhartha Mohanty told PTI.
On November 24, shares of LIC zoomed about 10 percent to Rs 677.65 on BSE. This is LIC's biggest one-day gain since listing.
LIC's individual New Business Premium income for six months ended September 30th, 2023 was Rs 25,184 crore compared to the corresponding six months of last year at Rs 24,535 crore.
The company said the Group Business total premium income for six months ended September 30th, 2023 was Rs 70,977 crore comprising of New business premium of Rs 67,505 crore.
In comparison, last year's group business total premium income was Rs 1,02,718 crore and comprised of new business premium of Rs 99,707 crore.
LIC, during its Q2 earnings, said 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.
Mohanty had then in the post-results press conference said that the insurer worked on realigning some of its products due to which VNB margins were affected.
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