Life Insurance Corporation Of India · tone and specificity signals across the available quarters.
Language signals
We are trying to focus... but the ultimate context is that VNB margin should improve but the volume should also... VNB margin should not come in the way for the growth of the overall business and for providing the solutions to the customer that are required for them.
The expense reduction is not the only goal for the corporation. It is all about expense optimization. We are open to increasing expenses also if it is required because ultimate goal is to bring about the growth in business and being able to provide services which meet the expectation of our customers.
Anything between 1.8 to 2 is the goal that we would like to achieve. But then we are also conscious of the situation that when the shift happens towards RBC regime these numbers would start looking quite different.
Dividend is not the only way to reward the investors... We have taken in fact our dividend yields are one of the better ones amongst the peer companies so there's no complaint about dividend but we have... we want again another important thing in context of LIC is whatever we deliver that should be sustainable we do not want to create hopes and then go back from there.
We are focusing continuously on value-accreting policies in a bigger way where you have seen a good growth in both non-par savings as well as non-par protection and that focus will continue so we expect the margins to improve.
The impact of RFR is positive which is something which is not something which is fixed as assumption but it is something which is already there to be used by everybody else.
As the nature of business itself 90% of the surplus goes to the policy holders only 10% gets transferred. So the idea of a directional change in the proportion of business between par and non-par is started only after we went into public organization after the IPO.
We are confident that we will be able to accelerate our efforts towards insurance for all by 2047 with such customer friendly initiative.
This margin has moved from 16.2% to 17.6%...the operating assumptions that includes the impact of GST contributed a negative 0.9%.
We are certainly not looking at anything on the commission or changing the commission structure right now but we'll be looking at increasing the ticket size and the contribution from the existing business.
LIC can take a decision to improve the ticket size significantly. Naturally, it will lead to higher persistency. But then affordability of insurance and being responsible for ensuring that everybody is covered is also very paramount because the customer base is something which is USP for LIC.
The favorable yield curve of Q3 of around 83 basis points or 80 basis points particularly at higher durations has impacted and contributed to an increase of 1.9% in VNB margin.
We are dynamically managing our product portfolio... currently we have 57 products which comprise 37 individual products, 12 group products, seven individual riders and one group rider.