LIC to launch its fintech arm in 2 year’s time

Mumbai: Life insurance behemoth Life Insurance Corporation (LIC) chairperson, Siddharth Mohanty said that the Corporation has roped in BCG for the ambitious project and it was likely to be launched in next couple of years. He told this while replying to a query by Bizz Buzz.

He further said that gap analysis has already been completed for the same. LIC reported its third quarter earnings on Thursday. The Corporation has launched a comprehensive digital transformation project named DIVE (Digital Innovation and Value Enhancement) and has enlisted a consultant, BCG to lead the initiative.

Net profit of the Corporation jumped 49 per cent YoY to Rs 9,441 crore in the October-December period ending December 31, 2023 from 6,334 crore recorded in the year-ago period. Mohanty hoped of the Corporation will be able to do better results in future too as there are certain areas as has been identified by it and where it will be doing all the required efforts to keep its business growing further.

Net premium income grew 4.67 percent to Rs 1.17 lakh crore in the quarter under review, from Rs 1.11 lakh crore in the year-ago period, the country's largest insurer said in an exchange filing. The insurer announced an interim dividend of Rs 4 per share.

The total annual premium equivalent (APE), a metric used to measure new business sales growth, grew to Rs13,163 crore from Rs12,370 crore last year. Value of new business of the insurer grew to Rs2634 crore versus Rs1801 crore.

As of now, the Corporation’s AUM stands at 49.66 lakh crore. LIC’s gross non-performing assets (GNPAs) stood at 2.15 percent as against 5.02 percent in the previous year. The solvency ratio of the insurer stood at 1.93 percent, from 1.85 percent in the corresponding quarter last year.