Insurance

The government has formally notified the implementation of 100 percent foreign direct investment in the insurance sector, marking a significant structural reform aimed at deepening capital inflows and strengthening industry competitiveness. The move is expected to enhance capital availability, encourage global insurers to expand operations in India and improve product innovation. Industry analysts view the decision as a transformative step that could accelerate insurance penetration in a largely underinsured market.

Oracle has entered into a strategic partnership with Tamilnad Mercantile Bank (TMB) to strengthen the bank’s digital infrastructure and accelerate innovation across the banking, financial services and insurance (BFSI) sector. The collaboration centers on deploying advanced cloud technologies, data management systems and next-generation banking platforms to enhance operational efficiency, cybersecurity resilience and customer experience.

General Insurance Corporation of India (GIC Re), the country’s largest reinsurer, reported a 6% year-on-year decline in net profit for the third quarter, with earnings slipping to Rs. 1,519 crore. The subdued performance reflects elevated claims, pressure on underwriting margins and fluctuating investment income amid uncertain global financial conditions. While the company maintained stability in its core reinsurance portfolio, higher loss ratios and cautious capital market sentiment tempered overall profitability.

Shares of Life Insurance Corporation of India surged in trading after the state-run insurer reported a robust set of earnings for the third quarter, surpassing market expectations. The rally reflects renewed investor confidence in LIC’s improving profitability, disciplined cost management, and stabilizing business metrics. Market participants responded positively to signs of margin expansion and improved operational efficiency, viewing the results as evidence of a gradual turnaround following earlier volatility.

The Indian government is reportedly evaluating the launch of a Follow-on Public Offer (FPO) for Life Insurance Corporation of India (LIC) in fiscal year 2025, as part of its ongoing strategic disinvestment roadmap. The proposed stake sale aims to unlock value from the nation’s largest life insurer while maintaining government control. Market analysts suggest that the timing and scale of the FPO will be critical to attract both institutional and retail investors.

Shriram General Insurance delivered a strong operational performance in the third quarter, recording a 19 percent year-on-year increase in gross written premium. The growth reflects sustained demand across motor, health, and commercial insurance segments, supported by expanding distribution reach and disciplined underwriting practices. The company benefited from steady customer acquisition, improved renewal rates, and a focus on risk-calibrated pricing.

Bharti AXA Life Insurance has entered into a strategic partnership with Equitas Small Finance Bank to broaden its insurance distribution network across India. The collaboration will enable Equitas’ banking customers to access a wide range of life insurance products, enhancing financial protection and promoting insurance penetration in underserved markets. Analysts note that such bancassurance tie-ups are critical for insurers seeking scalable distribution channels, especially in semi-urban and rural regions.

SBI Life Insurance Company reported a 5 percent year-on-year increase in third-quarter net profit, reaching Rs. 577 crore, supported by healthy premium collections and disciplined expense management. The growth reflects steady traction in individual and group insurance segments, as well as improved operational efficiencies amid a competitive life insurance market. Persisting regulatory support and rising awareness of insurance among Indian households continue to underpin demand.

Star Health and Allied Insurance Company Ltd. reported a sharp 40 percent decline in third-quarter net profit, which fell to Rs. 128 crore, largely driven by higher claims outgo and regulatory pressures on premium pricing. While gross written premiums showed moderate growth, elevated claims from health and critical illness policies constrained earnings. Management emphasized sustained focus on underwriting discipline, operational efficiency, and product diversification to mitigate margin pressures.

Canara HSBC Life Insurance reported a 6 percent year-on-year decline in net profit for the third quarter, with earnings slipping to Rs. 28 crore, reflecting margin pressures and higher operating costs. The softer performance came despite steady business activity, as the insurer navigated a competitive market and evolving regulatory landscape. Analysts note that increased investment in distribution, technology and compliance weighed on near-term profitability. However, the company’s balanced product mix and focus on long-term value creation continue to support its strategic position.