Page 18 - Insurance Times December 2022

2.65 lakh retail investors
LIC launches new guaranteed return single-
exits LIC shares
premium plan
According to the latest shareholding
A new guaranteed return single-premium plan called "Dhan Varsha" has
pattern of LIC, July-September quarter
been launched by the LIC. It is a "non-linked, non-participating, individual,
witnessed an exodus of over 2.65 lakh
savings life insurance plan" which provides a combination of protection and
retail investors from LIC. However, the
savings to policyholders.
number of shares held by 35.23 lakh
The policy offers a guaranteed lump sum on maturity, as well as a
retail investors has increased to 12.21
guaranteed death benefit to family members in case of the policyholder's
crore shares from 11.86 crore shares
untimely demise. The Dhan Varsha scheme will be available for sale only
(q-o-q). This is an addition of 35 lakh
until 31 March 2023. For opting the 15-year term plan, one's age must be
shares or 0.05 per cent to 1.93 per
at least 3 years. For choosing the 10-year term plan, the minimum age is 8
cent (1.88 per cent).
years. The policy offers two options. Option 1 is "1.25 times of Tabular
Retail investors are adopting cost-
Premium for the chosen Basic Sum Assured" and option 2 is "10 times of
averaging or buy-on-dips strategy as
Tabular Premium for the chosen Basic Sum Assured".
the share price kept falling every
Tabular Premium shall be based on the age at entry of the life assured, policy
month. Currently, LIC shares are ruling
term and the option selected but before allowing for any rebate. It does
near their lowest point since listing at
not include any extra premiums, taxes and rider premiums.
Rs. 595 against the issue price of Rs.
904 (for retail investors) and Rs. 889
(for policyholders).
confidence. LIC plans to transfer Rs 1.8 Fairfax filing follows the insurance
In the IPO, 39.86 lakh investors trillion ($21.83 billion), a sixth of the Rs regulator rejecting a proposal to
garnered 1.66 per cent stake or 10.51 11.57 trillion lying in its non- convert compulsory convertible
crore shares. That means, since IPO, participating fund, to its shareholders' preferred shares held by FAL
over 1.7 crore shares were added by fund. Corporation (part of Fairfax group) in
existing retail investors. Go Digit Infoworks into equity shares.
Fairfax eyes more stake in Fairfax currently owns 45.3% of the
LIC plans bonus shares to holding company Go Digit Infoworks,
digit's parent company
which has 83% stake in the insurer.
shore up battered stock Prem Watsa's Fairfax Financial Holding
Digit Insurance had mentioned the
LIC is planning to transfer nearly $22 has in its results filing said that it is
billion from policyholders' funds into a "exploring all avenues under applicable IRDAI's stance on the conversion of
CCPS (compulsorily convertible
fund earmarked to pay dividends or law" to achieve majority ownership in
preference shares) in its IPO offer
issue bonus shares, as it aims to shore the parent company of Go Digit
document. According to the draft red
up both its own net worth and investor General Insurance.
16 December 2022 The Insurance Times