LIC's stocks witnessed a surge of almost 10 per cent on Friday, after the insurance company announced to introduce 3-4 new products in the upcoming months, aiming to boost growth in its new business premium (NBP).
Within a defined reporting period, the New Business Premium (NBP) stands as a pivotal performance indicator for insurance companies, representing the premiums derived from newly sold policies.
In an interview with PTI, LIC Chairman Siddhartha Mohanty stated that the state-owned insurance company anticipates achieving double-digit growth in the current fiscal year compared to the previous one. Mohanty disclosed that LIC aims to achieve this objective through the introduction of new and attractive products.
Advertisement
On Friday, the shares of LIC ended in the green territory, at Rs 677 price level, witnessing a surge of almost 10 per cent or 60 points on the National Stock Exchange.
The insurance firm is set to introduce a new product in the initial week of December, with expectations of gaining substantial market attention. The upcoming product will include features such as loan facilities and premature withdrawal. Highlighting the dual benefits for both policyholders and shareholders, LIC Chairman Siddhartha Mohanty emphasized the appeal of guaranteed return products, noting that many shareholders also hold policies.
LIC's Q2FY24 financial results revealed a 50 per cent decrease in net profit to Rs 7,925 crore. In comparison, the corresponding period in the previous year saw LIC reporting a net profit of Rs 15,952 crore.
Advertisement
The company clarified later that direct comparisons are not accurate owing to accounting changes.
Just one email a week