Life Insurance Corporation of India's board will meet today (Friday) to consider a proposed mega initial public offering (IPO) of the state-run insurance behemoth, sources told CNBC-TV18. The board will discuss a likely discount and the portion to be reserved for policyholders, they said.
NSE
The company, which is 100 percent owned by the Government of India, is likely to submit a draft red herring prospectus (DRHP) today. The Insurance Regulatory and Development Authority (IRDAI) gave its go-ahead for Life Insurance Corporation's IPO proposal on February 9.
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LIC IPO: Insurer's board to meet today to consider IPO proposal, say sources
Product offerings
LIC’s product offerings include Life Insurance Plans, Endowment Plans, Whole Life Plans, Moneyback Plans, Term Insurance Plans and Insurance Riders.
Total number of shares
The central government is mulling to offload 5 percent of the shares it owns in the country’s biggest insurer. The government might sell 316 million shares of the 6.32 billion shares it holds in the company. The embedded value of the company has been estimated at over Rs 5 lakh crore.
Reserve portion for policyholders & agents
LIC has 29 crore policyholders and over 13 lakh agents, according to AngelOne report vs an approximate 7.3 crore existing Demat account holders in India, as of October 2021.
Market share picture
Gross written premium: 64.1 percent
New business premium: 66.2 percent
Number of individual policies: 74.6 percent
Group policies: 81.1 percent
Assets under management
Standalone AUM in FY21 stood at 36.7 trillion vs 16.8 trillion in FY20
Subsidiaries
LIC Pension Fund
LIC Cards Services
IDBI Bank
LIC Housing Finance
LIC Mutual Fund Trustee Company
LIC Mutual Fund AMC
Business network
LIC has 8 zonal offices - Mumbai, Delhi, Kolkata, Chennai, Hyderabad, Kanpur, Bhopal and Patna. It has 113 divisional offices, 2,048 branch offices, 1,546 satellite offices, 1,173 mini offices, and 13.53 lakh individual agents.
Overseas operations
The state insurer conducts overseas operations in Fiji, Mauritius, and United Kingdom. The company also has joint ventures with LIC B.S.C Bahrain, LIC Nepal, LIC Lanka, Kenindia Assurance Company, Saudi Indian Company, LIC of Bangladesh, and LIC Singapore.
Financials
| FY19 | FY20 | FY21 | H1FY22 | |
| Net Premium Income | 3.37 Lakh Cr | 3.8 Lakh Cr | 4.02 Lakh Cr | 1.86 Lakh Cr |
| Total revenue | 5.6 Lakh Cr | 6.15 Lakh Cr | 6.82 Lakh Cr | 3.35 Lakh Cr |
| PAT | 2,688 Cr | 2,712 Cr | 2,900 Cr | 1,437 Cr |
| Persistency ratio (13th month) | 66% | 61% | 67% | 67.7% |
| Conservation Ratio | 92.19% | 88.79% | 84.48% | |
| Solvency Ratio | 1.60 | 1.55 | 1.76 | 1.83 |
Top Holdings of LIC
| Companies | % Holding |
| Reliance | 6.13% |
| Infosys | 5.67% |
| IDBI Bank | 49% |
| TCS | 3.65% |
| HDFC Bank | 2.63% |
| M&M | 7.48% |
| Maruti | 5.26% |
| ITC | 16.23% |
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