Page 14 - Insurance Times December 2015 SAMPLE
P. 14
LIC of India
News
Lic Finances the Konkan Nomura unlikely to renew its contract with LIC
Railways' doubling The market is abuzz with talks that business to Reliance Capital AMC.
Nomura India is unlikely to renew its
tracks five-year contract with LIC and is plan- The sources said "LIC, which holds 45
ning to completely exit its mutual fund percent stake in the JV, is in no mood
Work on doubling of tracks on business here. The Japa-
Konkan Railway started from No- nese firm holds 35 percent to increase this and there-
vember 8, and the project of dou- stake in LIC Nomura MF, fore has started talking to
bling tracks is estimated to cost the which had an AUM of a state-owned lenders for
exchequer Rs 10,000 crore while little over Rs 11,157 crore selling the 35 percent
the electrification project will cost as of September- end, stake held by Nomura."
around Rs 750 crore. making it the 19th largest player in LIC's housing finance arm,
terms of AUM. LIC Housing Finance, holds
"Doubling of the tracks along with 20 percent stake in LIC Nomura MF.
the electrifica- If Nomura exits, the Japanese financial
tion would start powerhouse will become the 10th for- While a number of state-run banks al-
from November eign fund house to quit the crowded ready have their own mutual fund
8. The process domestic MF market that has now 43 arms, a few large PSBs like Bank of
of awarding players. US-based Goldman Sachs yes- India, PNB and Central Bank, among
the tender terday announced the sale of its MF others, don't have MF units and hence
would begin LIC will first try to woo those lenders,
soon. LIC has the sources said.
come forward to finance us and of-
fered loan of Rs 250 crore at LIC launches maiden ULIP product
cheaper rates and other major fi-
nance companies have shown their State-run insurer Life Insurance Corpo- a given policy year, four switches will
interests to fund the project," ration of India (LIC) launched its be allowed free of charge, Chander
Konkan Railway CMD Bhanu P Tayal maiden ULIP product across the coun- said while addressing a press confer-
said. try. Endowment Plus, a unit linked in- ence. The NAV (net asset value) of all
surance plan (ULIP) offers investment the segregated funds will be computed
He said "Konkan Railway has got ex- cum insurance during the term policy on daily basis and will be based on in-
cellent rating of 'AA+' and hence lots and provide due benefit of risk cover vestment performance and fund man-
of financing companies are likely to and benefits of investment markets, agement change of each fund type.
come forward to extend the loan. If LIC Senior Divisional Manager, Nagpur,
need be, then we can come up with R Chander said. The product will also offer double
bonds also." death benefit. Further, it comes with
In this product policy holders will have an accident death benefit rider which
Konkan Railways has fixed the tar- options to choose from any of the four provides for an additional amount
get of completing this project in next funds - bond fund, secured fund, bal- equal to accident death benefit sum
five years. ance fund and growth fund - and also assured on death due to accident.
with added conveniences of switching Option for partial withdrawal will also
between these funds, he added. Within be available under the plan.
10 The Insurance Times, December 2015
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