E-Paper
LIC to enter health insurance? ‘Done some internal groundwork’, exploring acquisition opportunities
At present , life companies can only offer long-term benefit covers under health insurance.
State-run Life Insurance Corporation may enter the health insurance segment and is reportedly exploring acquisition opportunities. This comes amid a proposal to allow composite insurance companies in the sector, Times of India reported. Earlier this year, a parliamentary panel suggested introducing composite insurance licenses to reduce costs and compliance burden for insurers. At present , life companies can only offer long-term benefit covers under health insurance and for them to provide hospitalisation and indemnity cover, an amendment to the Insurance Act would be needed.
What LIC chairman said on the move?
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LIC chairman Siddhartha Mohanty said, “There is an expectation that composite licences may be permitted by the new govt, and we have done some internal groundwork. While we lack expertise in general insurance, we are interested in health insurance and are also considering opportunities for inorganic growth."
LIC quarterly results
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The public sector insurer posted a net profit of ₹13,781.59 crore for the quarter ending on March 31, 2024- up by 4.5 per cent from ₹13,190.79 crore reported in the same period of the previous fiscal year.
"The Board of Directors has recommended a final dividend of Rs. 6 per equity share of Rs.10 each for the financial year 2023-24, subject to approval of shareholders in the ensuing Annual General Meeting of the Corporation," it said.
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LIC's net income from investments increased by 24.43 per cent year-over-year to ₹84,425.45 crore in Q4FY24 and net profit for FY24 was ₹40,676 crore, compared to ₹36,397 crore in FY23.
Additional pension liability due to wage revision for employees stood at ₹6,306.29 crore of which ₹829.19 crore has been recognized in FY24 across respective segments.
