- Education And Career
- Companies & Markets
- Gadgets & Technology
- After Hours
- Banking & Finance
- Energy & Infra
- Case Study
- Web Exclusive
- Property Review
- Digital India
- Work Life Balance
- Test category by sumit
Creating Value, Sustaining Trust
LIC makes its debut in the BW Real 500 list of companies this year at the third position behind Indian Oil and Reliance Industries based on its total income, and other relevant parameters
Photo Credit :
Under the able stewardship of Mangalam Ramasubramanian Kumar (M.R. Kumar), Life Insurance Corporation of India (LIC) successfully launched and completed the largest Initial Public Offer (IPO) ever in the Indian capital markets raising in excess of Rs 20,000 crore from the markets. LIC, as the insurer is popularly known, is now amongst the top ten listed companies in India by market capitalisation. The IPO process was started when Finance Minister Nirmala Sitharaman announced a proposal to this effect in the Union Budget speech in 2021. LIC makes its debut in the BW Real 500 list of companies this year at the third position behind Indian Oil and Reliance Industries based on its total income, and other relevant parameters.
But LIC’s journey through the fiscal year 2021-22 was riddled with challenges. The fiscal presented hurdles ranging from the Covid second wave and geopolitical tensions arising from the Russia-Ukraine conflict to hints of monetary tightening by US authorities, which together served to weaken the global economy. "LIC’s resilience to adapt to the changing environment during the pandemic-driven testing times reflected in the increased marketing activity during the last quarter of FY22, recording a growth of 18.70 per cent in the quarter of January to March 2022 in individual first year premium income, as compared to the corresponding quarter last year," said Kumar.
In FY22, the profit after tax (PAT) was Rs 4,043 crore compared to Rs 2,900 crore in FY21, up 39 per cent. LIC registered a growth of 6.31 per cent in weighted received premium (WRP) for the financial year ended March 31, 2022, with the total first year premium (FYP) increasing by 7.92 per cent (Rs 198,759.85 crore) and Group New Business Premium saw a 12.66 per cent increase (Rs 1, 43,938.59 crore) while number of new policies grew 3.56 per cent (2.17 crore) over last year. "The market share of LIC stood at 63.25 per cent in total first year premium for FY21-22 and 74.62 per cent in the number of new policies as of 31.03.2022 as against 66.18 per cent and 74.58 per cent, respectively, in the previous year," Kumar said.
In FY22, LIC’s net premium stood at Rs 4.27 lakh crore, an increase of 6.21 per cent over Rs 4.02 lakh crore in FY21. Income from investments of LIC, which is one of the largest asset managers, stood at Rs 2.92 lakh crore for FY22.
“The figures for the quarter ended March 31, 2022, and the corresponding quarter in the previous year, are the balancing figures between audited figures in respect of full financial year and published audited/unaudited year-to-date figures up to the end of the third quarter of the relevant financial year,” LIC said in its notes to accounts.
Covid Impact on Insurance Sector
The last two years have seen heightened awareness about life insurance. The opportunities of digital engagement and digitised delivery of services with migration of the customers from physical to the digital i.e. “phygital” modes are widely seen. A strategy of deploying ‘bionic’ agents by extending tech support in the form of digital tools and analytics to the agency force would surely go a long way in building the core digital sales capabilities and exploring a win-win model where there is a convergence of digital along with the best human qualities of advice and engagement, says the LIC chairman addressing the shareholders.
As on March 31, 2022, LIC’s agency strength stood at 1.33 million, with a large section working in the rural areas of the country. "Increased focus on IT enablers for the field force would aid higher persistency levels and enhanced customer satisfaction. Last year saw a 70 per cent growth in the number of digital transactions," said Kumar.
M.R. Kumar, Chairman, LIC
Total Assets: Rs 41,82,536 crore
Total Income: Rs 7,21,103 crore
Operating Profit: Rs 4,165 crore
Net Profit: 4,125