Page 9 - Insurance Times December 2021

LIC of India

News

LIC IPO expected to hit That strategy translates to creating in- 13,500.78 crore due to massive decline
surance policies that are non-participat- in individual single premiums and muted
market by Q4
ing rather than participating in nature, growth in group single premiums.
Department of Investment and Public although the calibrated switch wouldn't NBP is the premium acquired from new
Asset Management Secretary Tuhin compromise on potential returns to policies in a particular year. Among
Kanta Pandey has said that the much- policyholders, chairman M R Kumar large private players, HDFC Life, ICICI
awaited LIC IPO is expected to hit the told. At LIC, participating or 'par' prod- Prudential Life, and Max Life reported
market by the fourth quarter of the ucts, where holders get a share of the double-digit growth in NBP in October.
current fiscal. profits, are currently dominant.
SBI Life, onthe other hand, saw its NBP
The government is seeking to raise as "Our strength has generally been par grow 6 per cent in the same period.
much as Rs 10 trillion ($133 billion) by sell- (participating products) and that is On an annualised premium equivalent
ing up to a 10% stake. The sale of a 5% again a strategic call; we have to see (APE) basis, private insurers reported
stake would make it India's largest IPO, how to create value for shareholders
while a 10% dilution would make it the by selling more non-par," Kumar said. 19 per cent growth in total APE.
second-biggest of an insurer globally. "This is something we will work on over
Finance Minister Nirmala Sitharaman a period of time." LIC gets RBI approval to
in an interview said "We are pushing to hike stake in KMB to 9.9%
have it done. The problem is not that LIC pulls life insurers' new Life Insurance Corporation of India has
we don't want it or we are pussyfoot- biz premium down by 5% received approval from the RBI to raise
ing on it now, it is more a question of After recording impressive growth in its stake in Kotak Mahindra Bank to up
doing the due process." The Finance September, new business premiums to 9.99%, the bank informed the stock
Minister had announced plans to sell (NBP) of 24 life insurance companies exchanges on Monday. LIC held 4.96%
shares in the insurer in February 2020, degrew 5 per cent year-on-year (YoY) stake in the private lender as on 30 Sep-
but the outbreak of COVID-19 pan- in October, mainly due to Life Insurance tember 2021.
demic slowed the process. Corporation (LIC) of India's muted per- “We wish to inform you that Kotak
formance. Mahindra Bank Limited ("Bank") has
LIC switching focus to non-
In October, the industry received NBP received an intimation from Life Insur-
par policies to the tune of Rs 21,606 crore, down ance Corporation of India ("LIC") stat-
LIC of India, is seeking to change its 5.14 per cent YoY from the year-ago ing that the Reserve Bank of India had
product mix such that policies reward- period. While private insurers' NBP re- granted its approval to UC, for increas-
ing equity investors gain a bigger share corded double-digit growth of 12 per ing its holding in the Bank up to 9.99%
of business while maintain its dominance cent to Rs 8,105.46 crore, LIC's NBP of the paid up equity share capital of
in a rapidly expanding industry. degrew more than 13 per cent to Rs Bank, subject to compliance with the
The Insurance Times, December 2021 9