New Delhi Life Insurance Corporation of India (LIC) first year premium collection, a key metric, up 7.9% 1.98 trillion for the year ended March 31, data reviewed by Mint showed, boosting the state-run insurer’s prospects as the government gets ready to brave choppy markets to take the company public.
India’s largest insurer ended the last fiscal with a market share of 63.25%, which is lower than the previous year. However, the company’s premium collection grew by 51% in March The data shows that 42,319.22 crore a year ago, achieved a market share of 71%.
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Strong premium collection, especially in March, will be a shot in the arm for the government as it prepares to sell shares of insurance to the public for the first time.
A high-level committee meeting is expected this week to finalize the timing and size of the initial share sale, a government official, requesting anonymity, said. Another official had earlier said that the government may sell up to 7.5 per cent of LIC, but it may decide to sell between 5.5 per cent and 6.5 per cent depending on the interest of the investors.
As per the data, the country’s largest insurance provider sold 21.7 million insurance policies in the year ended March 31, an increase of 3.54% over the previous fiscal, increasing its market share in terms of policies sold to 74.6%. done. The data shows that around 4.9 million policies were issued in March alone, an increase of 4.88% compared to a year ago and a market share of 81.2%.
The life insurance industry sold a total of 29.15 million policies in FY12, of which 7.4 million were in March, with the lion’s share going to LIC. Whereas LIC’s individual single premium collection has increased by 61 percent 4,018.33 crore in March, group single premium up 48.1% 30,052.86 crore as per the data.
LIC did not respond to Mint’s queries on data related to the company’s performance till Wednesday.
The success of LIC’s IPO is crucial for the government to meet its asset sale target, which has been slashed marginally. 65,000 crore target for the current financial year is less than the revised 78,000 crore for the last financial year. Government may meet less than 17% of the revised asset sale target for FY22 as Russian invasion of Ukraine, and ensuing volatility in stock markets forced it to postpone LIC share sale this fiscal .
However, postponing the IPO beyond May 12 would mean that the government would have to include LIC’s December quarter financial statements and re-fill the prospectus, delaying the IPO by two to three months, which it wants to avoid. Is.
Department of Investment and Public Asset Management (DIPAM) secretary Tuhin Kanta Pandey said at the Mint India Investment Summit 2022 last month that there is strong investor interest in the state-run company’s offering, but the Center will go ahead with the IPO only if it allows the insurer. Be sure to list successfully.
The mega IPO has garnered significant interest from at least 12 large foreign and domestic fund management firms, Mint reported last week. At least five of India’s top asset management companies, three large foreign sovereign funds, two global pension fund management companies and two global hedge funds have committed to investing. 18,000 crore to the bankers who managed the LIC IPO, the report said.