Page 15 - The Insurance Times September 2025

He emphasised that despite global with companies shifting focus to non- (LIC) posted a 5% year-on-year rise in
headwinds-geopolitical risks, trade participating products amid regulatory net profit to Rs. 10,987 crore in
uncertainties, and climate challenges- changes and volatile equity markets. Q1FY26, driven by strong investment
the Indian economy is poised for SBI Life, the country's largest private income and reduced operating
growth in FY26. Insurers like HDFC Life life insurer, reported a drop in ULIPs to expenses. Net premium income rose
are tapping into this by leveraging 57% of total Annualised Premium 5% to Rs. 1.19 lakh crore, while
partnerships with banks and Equivalent (APE). Analysts attribute the investment income climbed 7% to Rs.
microfinance institutions to offer trend to revised surrender value rules 1.03 lakh crore. Operating expenses
coverage in Tier-II and Tier-III cities. and a strategic focus on high-margin, for insurance fell 10% to Rs. 7,549
Mistry outlined a clear strategy of non-par offerings. The protection crore.
"thoughtful and purposeful segment remained flat at 6%. While LIC saw a 34% increase in Annualised
expansion," underpinned by cutting- ULIP volumes dipped, SBI Life is Premium Equivalent (APE) in non-
edge technology to deliver a best-in- projected to show modest APE growth participatory products, while Value of
of 8% and VNB growth of up to 17% in New Business (VNB) margin improved
class customer experience.
the quarter. to 15.4% from 13.9%. CEO & MD R
He acknowledged challenges such as
However, margin compression is Doraiswamy attributed lower 13th-
rising surrenders and adverse product
expected. Brokerages have advised month persistency (64.35%) to earlier
mix but noted that new business
tracking VNB margins, product mix low-ticket policies but said revival
margins remained resilient, falling only
changes, and strategic commentary efforts are underway.
70 basis points. This signals robust
closely. The shift toward non-par The company has undertaken several
fundamentals and operational agility
products is expected to benefit long- product interventions in the past year
as HDFC Life adapts to evolving market
term profitability and risk-adjusted in response to evolving regulatory
demands.
returns, especially in light of changing frameworks. LIC continues to focus on
market dynamics and customer improving policyholder retention and
ULIP share moderates as preferences. product profitability, aligning with its
private life insurers shift broader transformation initiatives in a
LIC Q1 net profit up 5%, competitive insurance landscape.
to non-par products
VNB margin improves to
Listed private life insurers in India saw LIC awaits regulatory nod
a decline in the share of Unit-Linked 15.4%
Insurance Plans (ULIPs) in Q1FY26, Life Insurance Corporation of India to foray into health
insurance space
R Doraiswamy takes over as LIC MD & CEO for a LIC is exploring entry into the
standalone health insurance segment
three-year term and is awaiting regulatory changes
R Doraiswamy has been appointed as the Managing Director and Chief that would allow it to become a
Executive Officer of Life Insurance Corporation of India (LIC) for a period of composite insurer. Speaking on the
three years, or until he turns 62, whichever is earlier. The Ministry of Finance matter, LIC MD & CEO R Doraiswamy
formalised the appointment via a notification that also mentioned the tenure stated that the insurer is evaluating
would be subject to further orders. multiple strategic options, including
acquiring a significant stake in an
Prior to this role, Doraiswamy served as one of LIC's Managing Directors.
existing health insurer, rather than
His predecessor, Siddhartha Mohanty, completed his tenure on June 7, 2025, launching its own health insurance
after which Sat Pal Bhanoo was given interim charge for three months. LIC's
products.
leadership structure comprises four Managing Directors in addition to the
MD & CEO. The Corporation had earlier held
advanced talks with ManipalCigna,
Doraiswamy's elevation comes at a time when the insurer is executing a although no binding agreement has
multi-pronged strategy focused on product innovation, margin improvement, been finalised. Doraiswamy noted that
and digital transformation amid rising competition in the insurance sector. any investment exceeding the

The Insurance Times September 2025 15