Page 19 - The Insurance Times September 2024

Sources said the government, which
holds 96.5 per cent stake in LIC, is PNB MetLife Launches Bharat Manufacturing Fund
weighing options such as a follow-on in ULIP Segment
public offer (FPO) and qualified PNB MetLife India Insurance Company Limited has launched the Bharat
institutions placement (QIP) to dilute a Manufacturing Fund, offering policyholders a chance to invest in India's
small portion of its stake. This could manufacturing sector. This fund is available as part of their Unit Linked
fetch higher valuation vis-a-vis the IPO, Insurance Plan (ULIP) from August 1 to August 15 at an initial unit price of
going by the current stock price. Rs 10.
On December 20, 2023, the A ULIP combines life insurance and investment, where a portion of the
Department of Economic Affairs, premium provides life insurance, and the remainder is invested in equity,
Ministry of Finance, had granted the debt instruments, or a combination of both, based on the policyholder's risk
Corporation a one-time exemption, appetite.
allowing it to achieve 25 per cent MPS
within 10 years from the date of listing Investors can access the Bharat Manufacturing Fund through several existing
PNB MetLife ULIPs, including the Goal Ensuring Multiplier, Smart Platinum
- till May 2032 - in the public interest.
Plus, and Mera Wealth Plan. These plans combine life insurance protection
Further, on May 14, 2024, the with flexible investment options and can be easily purchased online.
Securities and Exchange Board of India
granted the Corporation three more Sanjay Kumar, Chief Investment Officer at PNB MetLife, stated that the fund
years to achieve 10 per cent public aligns customers' financial aspirations with the growth of India's
shareholding - that is, within five years manufacturing sector. The Nifty India Manufacturing Index has shown strong
from the date of listing (till May 16, performance, delivering five-year annualized returns of 25.3% compared to
15.3% for the Nifty 50 as of June 30, 2024.
2027).

LIC Targets Growth in details of the acquisition are yet to be the June quarter saw an impressive
Health Insurance, Projects disclosed, Siddhartha Mohanty, LIC's 23.7% year-on-year growth, indicating
Chief Executive Officer, confirmed strong demand for LIC's new insurance
Higher FY25 New-Business during a recent media briefing that the policies. The net VNB margin for the

Margin company is making substantial progress quarter rose slightly to 13.9%, up from
on this front. The acquisition aligns with 13.7% in the same period last year,
Life Insurance Corporation of India
LIC's previously stated intent, made in reflecting improved profitability from
(LIC), has outlined an ambitious growth
May, to explore inorganic growth new premium collections.
strategy for the upcoming fiscal year.
LIC has projected a 2%-3% increase in opportunities within the health
its value of new-business margin (VNB) insurance space. Max Life Insurance
for the fiscal year 2025, underscoring LIC's financial results for the first Launches 'Aarohan'
its focus on enhancing profitability quarter of fiscal year 2024 reflect the Initiative to Expand in
from new insurance policies. This company's robust performance and
growth projection is part of LIC's strategic focus. The insurer reported a Rural India
broader strategy to maintain its 9.6% year-on-year increase in net Max Life Insurance has announced the
dominance in the Indian insurance profit, amounting to 104.61 billion 'Aarohan' initiative to expand its
market while exploring new avenues rupees. This growth was largely driven distribution network by adding 75 new
for expansion. by increased sales of high-margin non- offices in Tier 3 and Tier 4 cities across
participating policies, which have India. The initiative aims to enhance
In a significant move towards
become a focal point in LIC's product insurance awareness and recruit local
diversifying its portfolio, LIC is actively
strategy. These policies, unlike life advisors to better serve
pursuing the acquisition of a majority
participating policies that share profits underserved markets.
stake in a standalone health insurance
company. This acquisition would mark with policyholders, allow LIC to retain Max Life currently reaches
a major entry into the health insurance a larger share of the profits, thereby approximately 44 lakh customers
boosting its margins.
sector, which has been identified as a through over 300 branch offices and
key growth area by the insurer. While The value of new business (VNB) for 10,000 bank partner branches. The

18 September 2024 The Insurance Times