Page 36 - Life Insurance Today December 2017

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LIC buys additional 2% in CIL MF eyes LIC's agent net-
Additional 2% stake was bought by LIC in Coal India Limited. As communicated work to boost sales
to the Bombay Stock Exchange, LIC has bought 12.47 crores,
Rajesh Patwardhan, the chief market-
increasing its stake in CIL to 9% from 7%. The 2% stake
ing officer
amounts to Rs. 3,500 crores at a closing price of Rs. 285.70 (CMO) of the
per share. Addressing the 43rd foundation day of Coal India, LIC MF, stated
Union coal minister Piyush Goyal expressed hope that Coal
that LIC has
India would be able to achieve its production target of 600mt 11.5 lakh regis-
this fiscal. 231.87 million tonnes of coal had been produced tered agents
in the first 6 months of 2017-18. Mr. Susheel Kumar, Coal Secretary informed and if one con-
that the ministry had fixed four priorities for the miner - quality, safety, envi- siders that 2-3
ronmental management and clean coal technologies. lakh of them are active agents then LIC
MF would try its best to get at least
Cancer cover by LIC one lakh agents selling its products in
Life Insurance Corporation of India (LIC) recently announced launch of a can- the next five years. "It would be a huge
cer cover as a health insurance policy with sum assured thing if we can do that," he added.
ranging from Rs. 10 lakh to Rs. 50 lakh. The 'Cancer He also mentioned that in the next
Cover' policy, can be taken by those in the age group of three years it has set a target to
20 to 65, was a non-linked plan with yearly and half- achieve asset under management
yearly premium paying options. (AUM) of Rs. 45,000 crore and
around 15% of that or around Rs.
Sum assured is available from Rs 10 lakh to Rs 50 lakh.
6,000 crore would be equity AUM.
There were two options -- sum assured and increment
of the sum assured by 10 per cent of basic sum assured for the first five years. Currently, the fund house has an
AUM of Rs 25,000 crore and out of
LIC places $1 billion bid for shares in New India Assur- which equity AUM is Rs. 2,800 crore.
It ranks 17th among MF players and
ance IPO eyes for slot on top 10 in near future.
The initial public offering (IPO) of state-owned New India Assurance Co. Ltd (NIA) "We have come a long way in the last
was fully subscribed on the back of a $1 billion 18 months. From Rs. 9,000 crore
(approximately Rs. 6,500 crore) bid by Life Insur- AUM in February 2016, we have
ance Corp. of India (LIC), said three people aware reached this position," he added.
of the development. NIA is the fourth public sec- The CMO indicated that it is looking
tor undertaking IPO this year. Apart from GIC Re, at LIC yearly claim payment of Rs.
which went public in October, Housing and Ur- 1,35 lakh crore to boost its business.
ban Development Corp. Ltd and shipbuilder "Only 5% of this claim payment
Cochin Shipyard Ltd are the other state-owned comes back to insurance again. We
companies that went public this year, as part of the disinvestment plans. are eyeing this huge fund," he added.

36 December 2017 Life Insurance Today

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