Whopping $463 billion! Ahead of LIC IPO, assets of insurance behemoth exceed the GDP of several economies

According to an IANS report, insurance behemoth LIC's assets at $463 billion exceeds the GDP of several economies, and it is ranked 5th globally in terms of life insurance GWP and 10th globally in terms of total assets. Its assets are 1.1 times more than the entire Indian MF industry i.e. Rs 31.4 trillion (till March 31, 2021), the report added.

LIC assets: 16.3 times the AUM of SBI Life

LIC's assets are 16.3 times the AUM of the second largest private insurer in India, i.e. SBI Life. 4 per cent of total NSE market cap is held by LIC.

LIC: Rs 36.7 trillion AUM

LIC is the largest asset manager in India with Rs 36.7 trillion AUM. LIC's AUM on a standalone basis was equal to 18 per cent of India's GDP for FY21.

LIC

It has been providing life insurance in India for more than 65 years and is the largest life insurer in India in terms of Gross Written Premium (GWP) with a market share of 64.1 per cent, New Business Premium (NBP) with a market share of 66.2 per cent, number of individual policies issued with a market share of 74.6 per cent and number of group policies issue with a market share of 81.1 per cent for fiscal 2021.

LIC: 5th globally

LIC is ranked 5th globally in terms of life insurance GWP and 10th globally in terms of total assets (comparing LIC's assets as on March 31, 2021 with other life insurers assets as on December 31, 2020).

LIC is the largest asset manager in India as on March 31, 2021, with AUM (comprising policyholders' investment, shareholders' investment and assets held to cover linked liabilities) of approximately Rs 36.7 trillion on a standalone basis.

LIC's investment in equities in India as on September 30, 2021 represented 7.62 per cent of the outstanding (non-promoter market cap in India).

As on September 30, 2021, LIC's individual products portfolio in India comprised 32 individual products and seven individual riders / and it's group product portfolio in India comprised 10 group products, which included one group micro insurance products.

In Fiscal 2019, Fiscal 2020, Fiscal 2021 and the six months ended September 30, 2021 -- our individual agents were responsible for sourcing 95.81 per cent, 94.74 per cent, 93.80 per cent and 96.82 per cent of LIC's NBP for its products on standalone basis, respectively

For Fiscal 2021, LIC issued approximately 21 million individual policies, representing a 74.6 per cent market share in new individual policy issuances.

For Fiscal 2021, LIC's market share in the Indian Life Insurance Industry was 66.2 per cent based on NBP, and its NBP was 1.96 times the total private life insurance sector and 8.9 times the NBP for the second largest player in the Indian Life Insurance Industry.

The NBP of the Indian Life Insurance is expected to grow at a CAGR of approximately 18 per cent from Fiscal 2021 to Fiscal 2026 for individual business as compared to a CAGR of 17 pc in group business over the same period.

CRISIL Research forecasts that the elderly population (aged 60 and above) in India will increase from 116.8 million in 2015 to 316.8 million in 2050 and the share of elderly in India's population will almost double from 9 per cent in 2015 to 17 per cent in by 2050, which will result in an increase in demand for pension/annuity products.

LIC: Global Insurance Brand

Brand LIC was recognized as the third strongest and 10th most valuable global insurance brand in 2021, as per the "Insurance 100 2021 report" released by Brand Finance. As per the report, the brand value of LIC in 2021 is US$8,655 million with a brand strength index (BSI) score of 84.1 in 2021 out of 100 with a corresponding AAA- brand strength rating.

The strength of brand LIC is further evidenced by it being recognized as WPP Brands second most valuable Indian Brand in 2019 and 2020.

(With IANS inputs)