LIC expects no immediate government stake sale, eyes long-term growth: CEO

Speaking exclusively to ANI in Mumbai, Doraiswamy said the government has sufficient time to meet the mandated public shareholding requirement and that any further stake sale would be undertaken as per the government's decision.

We do not expect any further offloading in the immediate future. But the government will follow the course as per the mandate given, Doraiswamy said.

LIC was listed on the stock exchanges in May 2022 after the government sold a 3.5 per cent stake through an initial public offering. The government currently remains the majority shareholder.

On LIC's equity investment strategy and its plans to increase its stake in ICICI Bank, Doraiswamy said the insurer continuously reviews its holdings depending on market opportunities and its cash-flow requirements.

We keep increasing and decreasing our stake in companies based on the opportunities available and the requirement of cash flow to manage our liabilities, he said.

He added that LIC's investment decisions are guided by the regulatory framework and the need to create long-term value.

Whether it is an institution or an individual company, that is something which we look at if we have to keep on creating long-term value. We are governed by a regulatory framework in respect of how much we can hold in a company, Doraiswamy said.

On asset allocation and the possibility of investing in alternative asset classes such as private equity and credit, the LIC chief said policyholder interest and capital safety would remain the key considerations.

We look at all possible investment opportunities based on the regulatory framework governing insurance and the safety of the policyholder funds. Having a very long-term liability, safety of this capital, providing a predictable return which should be in the interest of all stakeholders is important, he said.

Doraiswamy also expressed a positive view of the Indian equity market, saying LIC looks at investments from a long-term perspective rather than reacting to short-term market movements.

We are looking at the market not for short-term mortality; we are looking at long-term prospects. The current situation has resulted in a range of interest rates that provides an opportunity for investing and locking in our long-term returns, he said.

On insurance penetration, Doraiswamy said India continues to have significant untapped potential, particularly among sections of the population that remain underserved.

The market is very big with potential for growing insurance protection in India. We are looking at reaching every reachable person in the country by insurance protection, both offline and online, as part of the government initiative, he said.

He said LIC is also working to simplify the claims process and reduce paperwork for policyholders. For maturity claims, the corporation is moving towards a system where eligible customers would not need to undertake additional formalities.

For maturity claims, we are taking steps in such a way that our policyholders do not have to do anything. We check whether they are still connected and we disburse directly, Doraiswamy said.

Outlining LIC's strategy for the next three to five years, he said technology, customer focus and a greater contribution from protection and retirement-oriented products would be central to the company's growth.

Our strategy relies on remaining technology-enabled and customer-focused, with contributions from protection and retirement savings funds driving our growth momentum, he said.

On product innovation and the government's goal of Insurance for All by 2047, Doraiswamy said LIC is expanding its product offerings, including Platinum plans and term insurance products.

He said rising financial awareness, India's economic growth and an expanding distribution network would support wider insurance coverage and make the goal of achieving insurance for all by 2047 realistic. (ANI)