IPO Review - Life Insurance Corporation of India - ICICI Direct

Life Insurance Corporation (LIC) is the largest life insurer in India, with ~61.6% market share in terms of premiums (or GWP), and 71.8% market share in terms of number of individual policies issued as of December 31, 2021.

- LIC is the largest asset manager in India as at December 31, 2021, with AUM of Rs. 40.1 lakh crore. (annual premium of ~Rs. 4.0 lakh crore for FY21)

- LIC's individual products comprise (i) par (ii) non-par products, which includes savings, term, health, Ulip and annuity & pension products

Key triggers / Highlights

- The favourable demographic tailwinds supporting India's growth story, combined with under penetration in life insurance. GWP for life insurers is forecasted to grow at 14-15% CAGR in FY21-26 to reach Rs. 12.4 lakh crore

- Market leadership (~61.6% share) with cross-cyclical product mix dominated by participating products. Focus to further diversify product mix by increasing contribution of non-participating products

- Presence across India through an omni-channel distribution network with an unparalleled agency force sourcing ~96% of new premium as of December 31, 2021

- Strong geographical presence across India with 2,048 branch offices and 1,559 satellite offices covering 91% of districts in India

- Largest asset manager in India with an established track record of financial performance and profitable growth

For details, click on the link below: Link to the report

Source : Equity Bulls

Keywords

LIC LifeInsuranceCorporationofIndia ICICIDirect IPOReview