Chennai: LIC continues to dominate market in New Business Premium. Hon’ble dignitaries present today. As we all know the corporation has filed for its Initial Public Offering on Feb 13, 2022. The LIC brand is one of the key drivers in maintaining our leadership position in the life insurance industry and our business model has been very customer centric in nature. The sense of trust is still a mainstay amongst individuals and it is important to note that even after 65 years of existence and attending to the country and its countrymen, we still hold 2/3 market share when it comes to gross written premium and new business policies in FY21.
In group New Business Premium LIC continues to dominate the market accounting for more than 75% market share in FY21
The Corporation stands to be the 10th Largest in the World and 5th Largest in Asia. We had 286 mn policies in force under Individual business within India as at March 31, 2021, greater than the 4th largest country population wise as of CY2020. Even though we are seeing an increase in competition from private insurers our customer first culture and approach has held our fort well and we will strive to constantly innovate our product offerings and distribution methods as well as the way we service our customers physically and now more so digitally. Also it is important to note that historically life insurance policies have been saving oriented.
Just to reiterate the details of the Issue. The shares are at a Face Value of Rs 10 each and it is a complete offer for sale of up to 31,62,48,885 shares by the President of India through the Ministry of Finance, Government of India who is the promoter of the company.
The offer includes not more than 5% reservation for eligible employees and not more than 10% for Individual Policyholders. Of the entire size of the issue that will be determined on the pricing of shares, 50% will be allocated to Qualified Institutional Buyers, 15% to Non Institutional Investors and 35% to the Retail Public.
The Emerging Markets have been driving the growth in the global life insurance industry. Between 2014-2019 while global markets grew at 1.7% CAGR we saw emerging markets grow at 8% CAGR. The prospects of the industry is promising and India stands to be one of the fastest growing major economies when compared with US, China, Russia, United Kingdom, South Africa, Japan, Brazil and Malaysia. India is the 5th Largest market in Asia and has exhibited consistent growth
India’s insurance penetration is not comparable to that of the developed markets where mandatory pension contributions are not included in the insurance pie. The Insurance density in India remains very low even when you look at emerging countries. Additionally, the countries protection gap is the highest amongst all Asian counterparts. Moving ahead…
