LIC IPO DETAILS
The Life Insurance Corporation of India (LIC) has been providing life insurance in India for over 65 years and is the country's largest life insurer. LIC was formed in 1956 by the merger and nationalisation of approximately 245 private life insurance companies. For Fiscal 2021, it has a 64.1 percent market share in terms of premiums (or GWP), a 66.2 percent market share in terms of New Business Premium (or NBP), a 74.6 percent market share in terms of individual policies issued, and an 81.1 percent market share in terms of group policies issued. It is also India's largest asset manager. It was the sole life insurance firm in the country until 2000.LIC offers a diverse product offering that includes individual and group products in a variety of areas. Savings insurance products, term insurance products, health insurance products, annuity and pension products, and unit-linked insurance products are among them.
LIC IPO Pros
- It has a massive agent network, a solid track record, and a 65-year lineage.
- The world's fifth largest life insurer by GWP and the major participant in India's fast-growing and underserved life insurance business.
- A reliable brand and a customer-focused business approach.
- A cross-cyclical product mix that meets a variety of customer demands, as well as an individual product portfolio dominated by participating life insurance plans.
- Through an Omnichannel distribution network and an unrivalled agency force, we have a presence across India.
- Using technology to help customers connect and generate operational efficiency.
- India's largest asset manager, having a proven track record of financial performance and profitable development.
- A strong risk management structure.
- A very experienced and competent management team, an illustrious Board of Directors, and a solid corporate governance structure.
LIC IPO Cons
- This is a very competitive industry.
- Any negative publicity that has an influence on its brand name, reputation, or impression.
- Negative persistency measurements or a negative variance in persistency metrics
- The impact of LIC's decision to split its one consolidated 'Life Fund' into two separate funds, one for participating policyholders and one for non-participating policyholders.
- Difference in the quantity and/or value of claims compared to the assumptions used in pricing and setting reserves for its goods.
- A substantial chunk of its revenue is dependent on the sale of participating items and single premium products.
LIC Revenue
|
Year |
Profit |
|
2019 |
2,645 Cr |
|
2020 |
2,731 Cr |
|
2021 |
2,986 Cr |
LIC Total Assets
|
Year |
Total Assets |
|
2019 |
33,66,335 Cr |
|
2020 |
34,14,175 Cr
|
|
2021 |
37,46,404 Cr |
LIC Total Profit
|
Year |
Profit |
|
2019 |
2,627 Cr |
|
2020 |
2,710 Cr |
|
2021 |
2,974 Cr |
While the actual date of the IPO is unknown, any investor with a Demat account and a valid PAN card can apply. Existing LIC policyholders may be given preferential treatment, with the finance ministry proposing that 10% of the IPO be reserved for them. This essentially implies that if you are a current insured, your chances of receiving the allocation increase somewhat. To make things easier, register a Demat account in your name (if you don't already have one) and connect your PAN number to your LIC insurance in order to apply for the IPO once it becomes available. The process is straightforward and quick because it is done online.