Overexposure to group business a challenge for LIC, say analysts

LIC's solvency ratio rose to 211 per cent in FY25 from 187 per cent in FY23

As Sat Pal Bhanoo takes additional charge as the managing director (MD) and chief executive officer (CEO) of Life Insurance Corporation of India (LIC), analysts said the state-owned insurer faces several key challenges. These include a declining market share, higher exposure to the group business segment, and over-reliance on the agency distribution channels, according to experts.

 

Under Siddhartha Mohanty, who demitted office on June 7, LIC reported a modest rise in total premium collections, from ₹4.74 trillion in FY23 to ₹4.88 trillion in FY25. The new business premium (NBP) grew to ₹62,495 crore in FY25, from ₹58,757 crore in FY23.