LIC Plans Fintech Foray, Considers Strategic Investment, Says CEO Doraiswamy

Life Insurance Corporation of India (LIC) is considering setting up a fintech arm to support its expanding digital requirements, either through a strategic investment or by building the unit internally, according to Chief Executive Officer and Managing Director R. Doraiswamy. He said the insurer is already working with fintech and insurtech companies to bring innovation into its operations, while also evaluating investments in specialised players that could help improve returns on policyholders’ funds.

Doraiswamy said LIC has been among the early adopters of digital technologies and has already developed significant in-house capability through its software development centre and IT teams. At the same time, he noted that the company cannot rely entirely on internal systems and continues to depend on external IT service providers for new infrastructure and platforms. According to him, LIC needs both its own core development teams and outside technology support to modernise effectively and stay competitive in a fast-changing insurance market.

He added that LIC’s priority is to upgrade its IT applications and become more agile and responsive. The insurer is currently examining different options for a possible fintech partnership or investment and is weighing the value proposition of each route before making a decision.

On the subject of government stake dilution, Doraiswamy said LIC has been prepared for further divestment since the beginning of its listing journey. He said the final call on timing and size of any future stake sale rests with the government, and LIC will work closely with authorities whenever such a decision is taken.

LIC launched its initial public offering in 2022, which was the country’s biggest IPO until then. Through the issue, the government raised about Rs 21,000 crore by selling a 3.5 per cent stake in the insurer, which had previously been fully owned by the Government of India. Doraiswamy said the government remains focused on meeting listing norms that require a minimum public float over time, but market volatility has delayed the next offer.

He also said LIC has been active in rewarding shareholders after the IPO. In the last quarter, the company announced a 1:1 bonus issue and later declared a dividend that was 67 per cent higher than the previous year’s payout. The board has also recommended a final dividend of Rs 10 per equity share of face value Rs 10, subject to shareholder approval.

Earlier this month, LIC reported a 23 per cent jump in net profit to Rs 23,420 crore for the March quarter, marking the highest quarterly profit reported by any financial services company in India.