An autonomous body tasked with selecting top managers of state-run financial institutions and lenders has recommended the candidature of Siddhartha Mohanty, one of the four managing directors at Life Insurance Corp (LIC), as the next chairman of the insurer that is India’s biggest institutional investor.
The Financial Services Institutions Bureau (FSIB) recommendation came Thursday after it evaluated four candidates for the top LIC job.
Earlier this month, Mohanty was given the additional charge as chairman for three months, ending mid-June. However, the appointment is still pending final approval from the government. In February 2021, Mohanty became managing director.
Mohanty began his career at LIC as a direct recruit officer in 1985, and gained experience in various departments — marketing, HR, investments, legal, and personnel. Before taking over as MD of LIC, he was MD and CEO of LIC Housing Finance.
LIC’s Q3FY23 gross premium income rose 14.6% YoY to 1.12 lakh crore, driven by a 31.2% YoY increase in single premium, a 10.8% rise in first-year premium, and a 5.9% uptick in renewal premium.
The insurer’s gross VNB margin for individual business in 9MFY23 was 20%, up from 19.96% in FY22, primarily due to a slight improvement in par business.
“LIC can target a VNB margin of 25-30% in 3-5 years,” said Ansuman Deb and Ravin Kurwa of ICICI Securities in a research note on February 13.