LIC targets double-digit growth in FY2024 with new product launches
Insurance giant Life Insurance Corporation (LIC) has big plans for the coming months, with the goal of achieving double-digit growth in new business premium this financial year. LIC Chairman Siddhartha Mohanty told PTI, "We are projecting double-digit growth over the last year... In order to further reinforce our commitment, we are going to launch some new attractive products." This includes three or four new products designed to boost individual retail business.
First product launch in December
The first of these products, set to launch in December, promises assured returns and a unique feature: policyholders will receive 10% of the sum assured for life after the policy matures. Mohanty believes this product will shake up the market, as it caters to customers wanting to know their returns in 20-25 years. Additionally, the product will offer loan facilities and options for early withdrawal.
More policies to follow for double-digit growth
To reach their double-digit growth target, Mohanty revealed that a couple more policies will be introduced throughout the year. In the first half of this financial year, LIC's new business premium income (individual) segment grew by 2.65% to Rs. 25,184 crore, compared to Rs. 24,535 crore in the same period last year. According to IRDAI, LIC remains the market leader in the life insurance business with a 58.50% share.
LIC's assets under management and expense ratio
LIC's Assets Under Management (AUM) also saw an increase of 10.47%, reaching Rs. 47,43,389 crore as of September 30, 2023, compared to Rs. 42,93,778 crore a year prior. The overall expense ratio for the first half of this fiscal year was 15.14%, a decrease from 16.69% in the year-ago period. LIC held a market share of 40.35% in individual business and 70.26% in group business for the six months ending September 30.
