LIC's Long-Term Investment Strategy in a Volatile Market

R Doraiswamy, the newly appointed MD & CEO of LIC, outlines the corporation's approach to maintaining its leadership in the insurance sector despite recent market and interest rate downturns. Emphasizing a long-term investment perspective, LIC seeks value creation across all market cycles, diversifying into money market products and equity IPOs when opportunities arise.

Adjusting to Market Conditions

In response to falling rates, LIC has repriced its annuities, including Jeevan Akshay and Jeevan Shanti, to align with current market conditions. This move reflects LIC's adaptability and commitment to policyholder value.

Future Plans and Regulatory Compliance

With the government aiming to reduce its stake in LIC to 90% by 2027, the corporation is preparing for future regulatory changes, including risk-based capital requirements and IFRS compliance. LIC's solvency ratio remains robust, ensuring stability and confidence among investors.

Shifting Product Focus

LIC is transitioning towards non-par products to meet the evolving demands of younger customers, significantly increasing its non-par share in premiums. Despite a temporary decline in policy numbers due to regulatory changes, LIC is optimistic about recovery in the latter half of the year.

Exploring New Opportunities

While LIC has considered strategic stakes in health insurers and the potential for composite insurance, current plans remain focused on life insurance. The corporation also reflects on its banking aspirations post-IDBI stake sale, aiming to retain a significant presence in the financial sector.