LIC eyes entry into bond forward rate agreement market by end of FY25

The move comes as the interest rate cycle is set to soften, with insurers offering more guaranteed-return products

State-owned Life Insurance Corporation of India (LIC), the country’s largest insurer, is set to enter the bond forward rate agreement (FRA) market by the end of the current financial year (FY25).

 

This move is aimed at mitigating risks in its non-participatory (non-par) segment, according to two sources familiar with the development.

 

“We have not undertaken trades yet in bond FRA, we are still in the process. But, we should mostly be ready and start trading by the end of FY25,” a source said.

 

The move comes at a time when the interest rate cycle is set to turn softer amid