LIC's networth crosses Rs 18,00,000 cr mark
Thu, 16 Jan 2014 03:47:49 -0700
The public sector insurer increased its market share to 94 per cent in the life insurance market in December
By STAFF REPORTER
India's public sector insurance behemoth Life Insurance Corporation of India (LIC), which has over 2 crore policy holders, has crossed the Rs 18,00,000 crore networth mark, which is more than the total networth of all government banks, including State Bank of India.
According to sources in December, the public sector insurer increased its market share to 94 per cent in the life insurance market, thanks mainly to an aggressive push of its old basket of products which expired on December 31 under the new Irda norms. For the entire year, LIC's market share has now risen from 74 per cent to 85 per cent. The insurance behemoth collected Rs 8,500 crore first premium in December alone.
LIC's networth was calculated by an internal team, which worked out the "embedded value" – a term referred for companies’ valuation in the insurance parlance. LIC is the biggest institutional investor in the local stock market.
Embedded value of an insurance firm is basically the returns plus profits that the company expects to earn from the policies that it has sold in the market and the premium that it expects to generate from each policy sold over its period of tenure. HDFC Standard Life is the only other life insurance company in India to come out with its embedded value.
According to sources in December, the public sector insurer increased its market share to 94 per cent in the life insurance market, thanks mainly to an aggressive push of its old basket of products which expired on December 31 under the new Irda norms. For the entire year, LIC's market share has now risen from 74 per cent to 85 per cent. The insurance behemoth collected Rs 8,500 crore first premium in December alone.
LIC's networth was calculated by an internal team, which worked out the "embedded value" – a term referred for companies’ valuation in the insurance parlance. LIC is the biggest institutional investor in the local stock market.
Embedded value of an insurance firm is basically the returns plus profits that the company expects to earn from the policies that it has sold in the market and the premium that it expects to generate from each policy sold over its period of tenure. HDFC Standard Life is the only other life insurance company in India to come out with its embedded value.
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