₹13 lakh cr Estimated Value Life Insurance Corp
₹51,000 cr Bonus to policyholders Paid in 2019-20
70% market share In India’s Life Cover Space
The Unfolding
1 February 2020 Government announces intention to float IPO
5 February 2020 Union stages strike against decision
7 February 2020 LIC Chairman MR Kumar clarifies stake sale is not privatisation; FM says IPO to bring in retail investors
22 August 2020 SBI Capital Markets and Deloitte Touche Tohmatsu hired as pre-IPO transaction advisors
16 November 2020 Centre floats global tender to engage an actuarial firm to estimate value* of LIC
31 December 2020 Milliman Advisors selected for calculating EV
1 February 2021 Budget proposes changes to the LIC Act
*Embedded value (EV), or consolidated value of shareholders’ interest in life insurance business
It’s saral. At 66, she would be mature enough to don a new look, and step out into the open.
LIC gets ready to go public. The Life Insurance Corporation – often a lifeline for the government in times of crunch – comes handy when the finance minister works out a ₹1.75-lakh-crore cash jab for a staggering economy. Billed to be valued at anything between ₹90,000 crore and ₹1.3 lakh crore, the maiden public issue will be the biggest in the history of the Indian capital market.
This story is from the February 2021 edition of Outlook Money.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the February 2021 edition of Outlook Money.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
7 Steps To Refresh Your Finances In The New FY
Setting goals and then making your money work to achieve them can be a gamechanger for your financial life
Turn Of The Tide: Should You Invest In Debt Funds Now?
The past few years have been challenging for debt fund investors, but the case for adding them in your portfolio is now more compelling than ever
Who Should Choose An Index Fund?
Index funds’ returns are similar to their underlying index, so if cost and protection are high on your list and market-beating performance is secondary, they could be an ideal choice.
What Is Depreciation?
Depreciation indicates a reduction in the value of an asset over time. Typically, it occurs due to wear and tear of the asset over time as a result of continued use to calculate the depreciation of an asset, one needs to consider several factors, one of which is the useful life of the asset.
REGULATORY ROUNDUP
Change: The Securities and Exchange Board of India (Sebi) directs asset management companies (AMCs) to conduct stress tests on small and mid-cap funds and disclose key findings on liquidity and other aspects.
Plan Repayment Before Taking Loan
I have a home loan running but need a loan of around `10 lakh for renovating the house.
Fund Life Goals Before Business
I am in my late 20s and want to invest in the real estate sector.
SECRET ROAD TO FINANCIAL DIGNITY
Dignity is something most retirees want once their active work life comes to an end and it is closely tied to the individual’s financial well-being
'Combined Life, Health Plans Won't Increase Complexity'
The life insurance market in India has recorded a consistent premium growth over the years, but insurance penetration is yet to reach the desired level. Quite in line, HDFC Life Insurance has shown a growth of 5 per cent year-on-year in its total annual premium equivalent in the nine months until December 2023 and has grown on other parameters as well. Its assets under management (AUM) went up 20 per cent, while it recorded a net profit of 16 per cent y-o-y, in the period. Even in terms of penetration, the company’s growth in Tier II and Tier II cities are positive. Vibha Padalkar, managing director and chief executive officer of HDFC Life Insurance shared the secret sauce for the growth in a conversation with Nidhi Sinha, editor, Outlook Money, talked about the challenges the insurance industry faces, and the road ahead in view of recent regulatory proposals. Edited excerpts:
BUCKET YOUR WORRIES AWAY
Once you have accumulated a decent corpus in your working life, the next big task should be to smartly deploy it across different schemes through a bucketing strategy so that your regular expenses are taken care of while your corpus keeps growing. This will ensure that you do not outlive your corpus