Page 12 - Insurance Times Octoberr 2022

LIC New Pension Plus plan mium allocation charge. The premium IPO price of Rs 949. The company has
will buy the units of funds chosen by the eroded about Rs 1.75 crore worth of
launched - Guaranteed in-
policyholder. LIC will allow four free notional wealth as it had listed with an
come after retirement and switches for funds in a policy year. m-cap of Rs 6 lakh crore.
up to 15% additional ben- According to the LIC, under LIC New On the other hand, shares of Adani
Pension Plus, guaranteed additions shall Transmission have rallied as much as
efit
be payable under an in-force as a per- 130 per cent in 2022 so far. Bajaj Fi-
LIC has launched a New Pension Plus centage of one annual premium. The nance has remained flat in the current
plan. According to the state-run com- guaranteed addition on regular pre- year. India's largest insurer, which man-
pany, LIC New Pension Plus is a non-par-
mium ranges from 5 per cent to 15.5 ages assets worth more than Rs 41 lakh
ticipating and unit-linked pension plan. per cent. On a single premium payable, crore, had launched a Rs 20,500 crore
The plan is suitable for young persons to it will be up to 5 per cent on completion initial public offering in early May.
make provisions for post-retirement life. of certain years.
LIC reported a multi-fold surge in its
LIC New Pension Plus plan can be pur- The amount of guaranteed actions will June quarter net profit to Rs 683 crore
chased either as a single premium pay- be used to purchase units. The NAV will from Rs 3 crore a year ago. But on a
ment policy or a regular premium pay- be computed on daily basis. sequential basis, net profit was down
ment. Under the regular premium, the from Rs 2,371.5 crore logged in the
premium shall be payable over the term March quarter.
LIC shares down 30% since
of the policy. The policyholder will have Domestic brokerage firm Geojit Finan-
listing
the option to select the amount of pre-
cial Services has initiated its coverage
mium payable and policy term subject LIC is currently the 11th most valued
on LIC with a target price of Rs 810, an
to the minimum and maximum limits - listed Indian companyin India. Earlier it
upside potential of close to 20 per cent.
to be decided as per policy term and was among the top 10 most valued In-
"LIC saw a recovery in its market share
vesting age. dian companies by market
in the quarter gone by, and will con-
capitalisation.
LIC New Pension Plus Plan - Regular In-
tinue to maintain its dominant position
come aims to build a corpus by system- LIC, which made its debut on bourses
in the life insurance domain for a very
atic and disciplined savings. The amount earlier this year, is replaced by leading
long time," said the brokerage.
on completion of the term can be con- NBFC Bajaj Finance and Adani Group's
Strong goodwill among the general
verted into regular income. For regular Adani Transmission.
public, government backing, and the
income, the policyholder will have to The total market cap of LIC stood at Rs
robust investment portfolio remain
buy an annuity plan. 4.26 lakh crore, which was less than
favourable factors and ensure the com-
Adani Transmission's Rs 4.41 lakh crore
Under LIC New Pension Plus, the policy pany will perform well in the long term,
and Bajaj Finance's Rs 4.35 lakh crore.
buyer will have a choice of investing in Geojit added. Another brokerage firm
one of the four types of funds available. Shares of Life Insurance Corporation are Motilal Oswal has a target price of Rs
The premium will be subject to a pre- down by 30 per cent compared to its 830 on the stock with a buy rating.
12 The Insurance Times, October 2022