The country’s largest life insurance company, Life Insurance Corporation of India (LIC) is preparing to enter the fintech sector to meet its growing digital needs. The company is considering options to start fintech business through strategic investment or by setting up a new unit on its own. The company’s Chief Executive Officer (CEO) and Managing Director R Duraiswamy has said this.
Duraiswami said that the company is working closely with fintech and insurtech companies to meet the needs of the changing times and promote innovation. Also, LIC, being a large financial unit investing in various institutions, is also exploring the possibility of strategic investment in such special ventures, so that better returns can be achieved on the funds of the policyholders.
Company is making big plan
He said that LIC has been one of the first units to adopt tech innovation. The company has set up a software development center to develop its business applications, where a large number of experts are employed. However, collaboration with external information technology service providers is also sought for development of modern technology infrastructure and new digital platforms.
According to Duraiswami, LIC is harnessing the capabilities of both its internal technology team and external technology partners. The company is evaluating various options and may announce any strategic partnerships or new initiatives in the future. He says that the main objective of LIC is to modernize its IT systems and become more agile and effective amidst competition.
LIC will come back in the market soon
On the possibility of the Central Government selling more stake in LIC in the future, he said that the company is fully prepared for it. Such potential developments were kept in mind right from the time of preparation for the initial public offering (IPO). He said that the final decision on stake sale has to be taken by the government and whenever it happens, LIC will fully cooperate in its successful implementation.
LIC’s IPO came in the year 2022, through which the government raised about Rs 21,000 crore and sold 3.5 percent of its stake in the company. Earlier LIC was completely owned by the Central Government. He said that the government is committed to meeting the minimum public shareholding standards prescribed for listed companies, but the appropriate time is being awaited in view of the current market conditions.
Declaration of dividend of Rs 10
Duraiswami said that after the IPO, LIC has taken several steps towards giving better returns to the shareholders. Recently the company announced the issue of one-for-one bonus shares and has also significantly increased the dividend. The board of directors has recommended a final dividend of Rs 10 per share for the financial year 2025-26. LIC has earned a net profit of Rs 23,420 crore in the March quarter, up 23 per cent, the highest quarterly profit recorded by any financial services company in the country.
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