LIC’s Working to Include Q3 Results in IPO Prospectus

Over the year, as LIC’s investment book grew, it become an investment company. The latest numbers at the end of FY21 showed that its total income growth increased to the highest in five years, mainly due to investments rather than insurance. Premium income growth slowed to 6% in FY21 from 12% the previous year, while income from investments increased 18%, the highest since FY17 when it had risen 22%. LIC’s net profit increased 7% in FY21 to Rs2,907 crores from Rs2,713 crores the previous year. Premium income grew to Rs4.03 lakh crore from Rs 3.79 lakh crore.

LIC has made two year of back to back investment gain. After gaining Rs37,000 crores last fiscal year ended March 2021, it has made gain of Rs 30,000 crore until October this year, chairman MR Kumar said in an interview in November.

Analysts are looking forward to the updated numbers to compare them with listed private-sector insurers ICICI Prudential Life Insurance and HDFC Life insurance.

Updated numbers from the insurance behemoth are also important, especially since its private sector rivals have been hit hard this fiscal year amid rising claims due to mortalities linked to Covid.

Despite a loss in market share over the last decade, LIC is still the largest when it comes to renewal premium with a 63% share, according to a presentation made to investors in December.

LIC dominates rural India with a 71% market share, followed by SBI Life at 7% and HDFC Life at 3%, date from the insurance regulator showed.

The newer companies are relying on digital to expand their reach. The government is keen to complete the sale this fiscal year as its other plans for stake sales to generate revenues have hit a roadblock.

Listing of LIC will be crucial for the government in meeting its disinvestment target of Rs 1.75 lakh crores for FY22.

So far this financial year, years the government has raised Rs 9,330 crore through the sale of minority stakes in PSUs and the sale of SUUTI (Specified Undertaking of the Unit Trust of India) state in Axis Bank. S-ET

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