Page 16 - Insurance Times November 2022

Measure LIC performance Future Generali India aims health cover. It is now, however,
witnessing a tapering of interest.
by market share growth: 20% growth
However, it will still continue to grow
Future Generali India Insurance is
LIC Chairman faster due to the lower base, he said.
expecting close to 20 per cent growth
The company's combined ratio stood
LIC chairman M R Kumar has said
in the current financial year. It had
at 108 per cent and solvency ratio was
that the LIC's performance should
registered a growth of around 8 per
be measured by its ability to retain at 166 per cent during 2021-22.
cent in gross written premium at Rs.
market share and even grow it in
4,210 crore in 2021-22.
recent months. According to Kumar, IndiaFirst Life Insurance
With a gross written premium of Rs.
nowhere in the world has a public files draft papers to raise
1,617 crore, motor insurance
life insurer retained market share
accounted for nearly 38 per cent of its funds via IPO
like LIC even after 20 years of
overall premium collections during IndiaFirst Life Insurance has filed
competition.
2021-22. The crop, corporate and non- preliminary papers with capital
The first annual general meeting of
motor retail accounts for 20 per cent markets regulator Sebi to raise funds
the corporation, which was held
each of the company's total gross through an initial public offering (IPO).
virtually, saw shareholders berate
written premium.
the management for the pricing of According to merchant banking
the shares in the initial public According to Anup Rau, Managing sources, the IPO size could be between
offering (IPO), with some speakers Director & CEO, FGII, the health Rs 2,000 crore and Rs 2,500 crore.
complaining about how the common insurance vertical is expected to grow The public issue consists of a fresh issue
man has lost money. faster at around 25 per cent. of equity shares worth up to Rs 500
"The way to measure the "There is a revival happening in the crore and an offer-for-sale (OFS) of up
management's efforts, to my mind, motor business on the back of higher to 141,299,422 equity shares by
is our ability to maintain and sales in vehicles. We expect close to 20 promoter and selling shareholders, as
profitably increase market share per cent growth at the overall per the draft red herring prospectus
(DRHP).
over a very long term. Even after 20 company level," Rau told on the
years of opening up of the industry, sidelines of the launch of its As a part of the OFS, Bank of Baroda
we continue to be the market comprehensive health insurance (BOB) would sell 89,015,734 shares,
leader," said Kumar. He said that in product, FG Health Absolute, here Carmel Point Investments India would
January this year, the corporation's recently. offload 39,227,273 shares and Union
market share (year to date) was Bank of India would divest 13,056,415
Health insurance had witnessed a
61%, which rose to 63% in March, shares.
steep spike over the last two years due
and by June it rose even further to
to the Covid-induced pandemic and Proceeds from the fresh issuance
65.4%. Currently, it is around 68%.
rising awareness on the need for worth Rs 500 crore will be used
14 November 2022 The Insurance Times