Life Insurance Corporation of India (LIC), the country’s largest life insurer, will step up sale of non-single premium policies to about 25 per cent in 2017-18 to bring balance in its business growth profile. LIC Chairman V K Sharma said the state-owned insurer has already met its FY17 target for new business premiums and was concentrating on efforts to grow income from non-single premiums for this financial year.
The thrust would be maintained in 2017-18 and he expects growth for the non-single premiums stream (individual as well as the group segments) of over 25 per cent, Sharma said on the sidelines of an insurance summit organised by the Federation of Indian Chambers of Commerce and Industry (Ficci).
Income from the non-single premium segment saw 8.16 per cent growth at Rs 13,646 crore in April-December 2016, against Rs 12,617 crore in April-December 2015. The pace of expansion in group non-single premiums was better at 53.34 per cent in April-December 2016. It garnered premium of Rs 3,220 crore in nine months of FY17, from Rs 2,100 crore in April-December 2015, according to Life Insurance Council data.
Backed by robust growth in the single premium segment, LIC posted a 12.43 per cent growth in total premium income at Rs 1.45 lakh crore in the nine months ended December 2016 from Rs 1.29 lakh crore in the same period last year.
Individual single premium income grew 176.38 per cent to Rs 18,500 crore in April-December 2016 from Rs 6,693 crore a year ago. The group single premium segment saw a 26.05 per cent growth at Rs 48,156 crore as against Rs 38,203 crore over the same period.
LIC’s gross total income grew 15.76 per cent to Rs 3.37 lakh crore against Rs 2.92 lakh crore a year ago.