LIC Policyholders have to update PAN details by Feb 28 to be able to apply in Policyholder quota in IPO
Life Insurance Corporation of India (LIC), the market leading insurer and financial conglomerate, has mentioned that every policyholder shall have to ensure that his / her PAN details are updated in the policy records of the Corporation on or before 28th February 2022 in order to be considered an Eligible Policyholder for application in the forthcoming Public Issue.
The PAN updation can be done on LIC website either directly or with the help of agents: https://licindia.in/Home/Online-PAN-Registration
Quota: The aggregate of reservations for Eligible Policyholder(s) shall not exceed 10% of the total Offer size. The portion of the Offer available for allocation to Eligible Policyholder(s), on a proportionate basis subject to the receipt of necessary approvals from the Government of India.
Policyholders (excluding such other persons not eligible under applicable laws, rules, regulations and non-Individual policy holders) of LIC having one or more policies as on the date of the DRHP (i.e., 13th February 2022) and Bid / Offer Opening Date and are residents of India would be eligible to apply in this Offer under the Policyholder Reservation Portion and avail of the discount.
Policyholder Discount: LIC and the Government of India, in consultation with the BRLMs, may offer a discount to the Offer Price to Eligible Policyholder(s), subject to necessary approvals as may be required, and which shall be announced at least two Working Days prior to the Bid / Offer Opening Date.
Public Issue: LIC is proposing an Initial Public Offer (IPO) of up to 316,249,885 Equity Shares of face value of ₹10 each (“Equity Shares”) through an Offer for Sale by the President of India, acting through the President of India, acting through the Ministry of Finance, Government of India (“Selling Shareholder”).
The objects of the Offer are to achieve the disinvestment agenda of the Government and for LIC to get benefits of listing the Equity Shares on the Stock Exchanges.
The Employee Reservation Portion shall not exceed 5.00% of LIC’s post-Offer Equity Share capital.
LIC is a Domestic Systemically Important Insurer and a financial conglomerate. LIC has been providing life insurance in India for more than 65 years and is the largest life insurer in India, with a 64.1% market share in terms of premium (or GWP), a 66.2% market share in terms of new business premium (or NBP), a 74.6% market share in terms of number of individual policies issued, a 81.1% market share in terms of number of group policies issued for Fiscal 2021, as well as by the number of individual agents, which comprised 55% of all individual agents in India as at March 31, 2021. (Source: the CRISIL Report).
10 things to know about LIC’s market-leading performance:-
Life Insurance Corporation of India is the largest life insurer in India with a market share of 64.1% of gross written premiums, and the largest asset manager in India as of September 30, 2021 with AUM worth Rs 39.56 lakh crore. LIC was recognized as the third strongest and tenth most valuable global insurance brand according to the “Insurance 100, 2021 Report” released by Brand Finance. Brand LIC was recognized by WPP Kantar as the second-most valuable brand in India in the report BrandZTM Top-75 Most Valuable Indian Brands for 2018, 2019 and 2020.
Take a look at LIC’s commanding market shares: 64.1% of gross written premiums (GWP), 66.2% of new business premiums (NBP), 74.6% of individual policies issued, 81.1% of group policies issued. LIC has 55% of all individual agents in India.
LIC issued 2.1 crore individual life policies in India, a 75% market share of new individual policies issued in India for FY21. The Indian life insurance market is the tenth largest in the world and the fifth largest in Asia in terms of insurance premiums.
LIC is ranked fifth globally by life insurance gross written premiums, comparing its fiscal 2021 figures with global peers’ 2020 figures, and tenth globally, compared to other life insurers’ total assets as of December 31, 2021.
LIC is the largest asset manager in India as of September 30, 2021, with AUM or Assets under Management comprising policyholders’ investments, shareholders’ investments and assets held to cover linked liabilities of Rs.39. 56 trillion (lakh crore).
LIC’s assets under management is more than 3.3 times the AUM of all private life insurers in India, approximately 16.2 times more than the AUM of the second largest in Indian life insurance, more than 1.1 times the entire Indian mutual fund sector’s AUM, and 18.5% of India’s annualized GDP for fiscal 2022.
With an enormous agent network, strong track record, immense trust in the brand “LIC” and the Corporation’s 65-year lineage, LIC has 28.26 crore policies in force under the individual business as of September 30, 2021.
The Corporation has a diversified product portfolio covering various sub-segments in its individual and group products. Its individual life-product portfolio comprised 32 individual products (17 participating, 15 non-participating) and seven individual optional rider benefits as of September 30, 2021.
LIC’s group product portfolio in India comprised 10 group products. Customers in the age bracket of 27 to 40 years accounted for approximately 42% of individual policies sold in fiscal 2021.
The Corporation has an omni-channel distribution platform for individual products. Among life insurance entities in India, it has the largest individual agent network, comprising 13.4 lakh individual agents as of March 31, 2021. LIC’s distribution network spans 13.4 lakh individual agents, 72 bancassurance partners, 174 alternative channels, its website (digital sales), 3,463 active micro-insurance agents and 4,400 points-of-sales persons for life insurance schemes.
LIC has a pan-India network with 2,048 branch offices and 1,554 satellite offices in India covering 91% of all districts in the country. The LIC’s subsidiaries are LIC Pension Fund, one of the three companies appointed as a pension-fund sponsor under the Indian Government’s New Pension System, and LIC Cards Services Ltd. (credit cards). LIC’s associates in India are LIC Housing Finance Ltd., LICHFL AMC Ltd., IDBI Bank Ltd., IDBI Trusteeship Services Ltd., LIC Mutual Fund AMC Ltd. and LIC Mutual Fund Trustee Pvt. Ltd. LIC has a branch each in Fiji, Mauritius and the United Kingdom, and subsidiaries in Bahrain (with operations in Qatar, Kuwait, Oman and the UAE), Bangladesh, Nepal, Singapore and Sri Lanka in the life insurance industry.
Source: CRISIL Report and LIC DRHP