Page 14 - The Insurance Times October 2024

Ò»©­

stood at Rs. 1.13 trillion, reflecting a
LIC Seeks IRDAI Review of Surrender Value 15.66% year-on-year increase.
Guidelines Individual premiums grew by 7.04% to
Rs. 67,192 crore, while group
Life Insurance Corporation (LIC) has approached IRDAI to review the
Surrender Value Guidelines issued in June 2024. While the guidelines were premiums surged by 30.87% to Rs.
considered favorable for policyholders, increasing surrender values from 30% 46,578 crore. LIC's value of new
business (VNB) premium rose by
to over 70%, LIC is requesting a reassessment of how surrender values are 23.66%, with its VNB margin reaching
calculated.
13.9%. The company expects further
The surrender value in life insurance refers to the amount a policyholder improvements in profitability, targeting
receives when they choose to terminate their policy before maturity or a VNB margin of around 20% in the
before a claim is made. It is typically a portion of the premium paid, minus next 2-3 years. LIC has also been
any applicable fees, and grows over time. Early surrender may result in a increasing the share of non-par
lower or even zero surrender value. LIC's request comes as the new products in its individual business
guidelines are set to take effect shortly, with the industry awaiting IRDAI's portfolio, which accounted for 23.94%
decision. in Q1 FY25 compared to 10.22% in the
same period last year.

LIC Pays Rs. 3,662 Crore Government of India holds a 96.5% IndiaFirst Life Becomes
stake in LIC, which remains the market
Dividend to Government leader in the Indian life insurance First Insurer to Operate in
State-owned Life Insurance industry with an asset base of over Rs. GIFT City
Corporation of India (LIC) has handed 52.85 lakh crore. IndiaFirst Life Insurance has become
over a dividend cheque amounting to the first Indian life insurer to begin
Rs. 3,662.17 crore to Finance Minister LIC Reports 9.6% Growth operations in Gujarat International
Nirmala Sitharaman. The cheque was Finance Tec-City (GIFT City). The
presented by LIC's Chief Executive in Q1 FY25 Profit company inaugurated its IFSC
Officer and Managing Director, Life Insurance Corporation of India Insurance Office, marking its entry into
Siddhartha Mohanty, in the presence (LIC) has reported a year-on-year the international financial hub.
of M.P. Tangirala, Additional Secretary increase of 9.61% in net profit, Rushabh Gandhi, Managing Director
at the Ministry of Finance. reaching Rs. 10,461 crore for the first
and CEO of IndiaFirst Life, expressed
LIC also paid an interim dividend of Rs. quarter of FY25. This growth was excitement about being the first to
2,441.45 crore on March 1, 2024, primarily driven by a strong offer foreign currency-denominated
bringing the total dividend payout to performance in the group business life insurance products to global
Rs. 6,103.62 crore for the financial premium segment. customers. The company's
year 2023-24. As of March 2024, the LIC's premium income for Q1 FY25 International Insurance Office (IIO) will

The Insurance Times October 2024 13