LIC Awaits Changes In Insurance Act For Foray In Health Insurance

Mumbai: A volatile equity market impacted the profitability of Life Insurance Corporation of India (LIC) which reported a 5 percent rise in standalone net profit at Rs 10,987 crore for the quarter ended June 30, 2025 compared to Rs 10,461 crore in Q1FY25. The insurer, which is the largest institutional investor in the stock market, made a profit of Rs 17000 crore from the sale of equities during the quarter, a growth of 15 per cent quarter on quarter. The insurer had sold stocks worth Rs 50,000 crore during the quarter.

Speaking to reporters at his maiden press conference, R Doraiswamy managing director and chief executive of LIC said, “The growth in operating profit has been encouraging. However, market conditions haven’t been as favourable for capital gains, which explains the lower net profit growth. We will continue to focus on enhancing the profitability.”

The total premium income for the quarter ended June 30, 2025, was Rs 1,19,200 crore compared to Rs 1,13,770 crore for the quarter ended June 30, 2024, registering a growth of 4.77 per cent. The Gross NPA ratio stood at 1.42 percent during the quarter under review, as against 1.95 percent in the same period last year.

Responding to a question on its plans to enter health insurance, Doraiswamy said that the insurer is keeping all options open including buying a stake in a pure health insurance company or composite license. It is awaiting the amendments to the Insurance Act and watching closely the evolving space of health insurance. The insurer is also expanding its options in terms of choosing the target company. Earlier there were reports that the insurer is in talks with Manipal Cigna Health Insurance to buy a stake in it. “If the concept of composite insurance becomes a reality and if LIC decides to adopt that model, we can look at launching our own products. Until then, a strategic stake is the option on the table.”

“For us to foray into health insurance, we need not directly sell health insurance products. We were looking at having a strategic stake in a health insurance company... as an investor we are very much allowed to look at any investee company for investment.” He said that LIC could also look at applying for a special permission from the regulator for taking a stake higher than the regulatory limits as per the investment regulations of IRDAI,” Doraiswamy added.