MD Jagannath said LIC is in discussions with banks to expand its ties

 MD Jagannath said LIC is in discussions with banks to expand its ties

The biggest insurer in the nation formed partnerships with J&K Bank and Saraswat Urban Cooperative Bank during the April–June FY24 quarter.

According to Managing Director M Jagannath, the Life Insurance Corporation of India (LIC), the biggest insurer in the country, is in discussions with banks to expand its bancassurance channel business.

"We aim to expand collaborations to improve our bancassurance channel, and discussions are ongoing with certain banks," Jagannath said at the press conference after the company's Q2FY24 earnings.

The biggest insurer in the nation formed partnerships with J&K Bank and Saraswat Urban Cooperative Bank during the April–June FY24 quarter.

Jagannath went on to say that LIC's current collaborations with a few institutions had produced excellent outcomes. "Our current collaborations with banks have produced positive outcomes. We're going to improve them too," he said.

On November 10, 2023, the insurance said that its net profit for the quarter that ended on September 30, 2023, had decreased by 50% to Rs 7,925 crore. The insurance giant declared a net profit of Rs 15,952 crore for the same time last year.

According to a press statement from the insurance, YoY profit data cannot be compared because of changes made to its accounting rules in September 2022 regarding the transfer of money (Net of Tax).

The decline in net premium income was the main cause of the profit decline. Net premium income for Q2FY24 was Rs 1.07 lakh crore, a 19% decrease from Rs 1.32 lakh crore during the same time last year.

Gross non-performing assets (GNPAs) for the insurance were 2.43 percent, compared to 5.60 percent the year before. Its net NPA did not change from the same time last year.

In comparison to the Rs 3,677 crore for the six months ended September 30, 2022, the value of new business (VNB) for the six months ended September 30, 2023, was Rs 3,304 crore. During the same time frame, the net VNB margin was constant at 14.6%.