LIC IPO: Ministry of Finance, earlier in 2021, said that the IPO of LIC will hit the share market in the FY 2021-22 itself. The life insurer is expected to submit the papers for filing the IPO with SEBI by the third week of January 2022.
New Delhi: Ahead of LIC’s IPO, the assets of the biggest life insurance company in the country have been valued at $463 billion. It is higher than the GDP of several countries. According to media reports, LIC ranks 5th globally in terms of Gross Written Premium (GWP). In terms of total assets, the company ranks 10th globally. The assets of the company are 16.3 times the assets of the second-largest private insurer, SBI Life.
LIC is the largest asset manager in India with Rs 36.7 trillion AUM. LIC’s AUM on a standalone basis was equal to 18 per cent of India’s GDP for FY21. It has been providing life insurance in India for more than 65 years and is the largest life insurer in India in terms of Gross Written Premium (GWP) with a market share of 64.1 per cent, New Business Premium (NBP) with a market share of 66.2 per cent, number of individual policies issued with a market share of 74.6 per cent and number of group policies issue with a market share of 81.1 per cent for fiscal 2021.
CRISIL Research forecasts that the elderly population (aged 60 and above) in India will increase from 116.8 million in 2015 to 316.8 million in 2050 and the share of elderly in India’s population will almost double from 9 per cent in 2015 to 17 per cent by 2050, which will result in an increase in demand for pension/annuity products.
LIC IPO To Be Listed Before March 31, 2022
Ministry of Finance, earlier in 2021, said that the IPO of LIC will hit the share market in the FY 2021-22 itself. According to the latest media reports, the life insurer is expected to submit the papers for filing the IPO with SEBI by the third week of January 2022.
According to the Times of India, the IPO is expected to raise Rs 1 lakh crore, making it the biggest IPO of India. LIC officials also told investors that it wants to increase its market share of the bancassurance channel.
