LIC assets at $463 bn exceed GDP of many economies
   Date :05-Jan-2022

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NEW DELHI :
 
LIC 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
 
LIC’s AUM on a standalone basis was equal to 18 per cent of India’s GDP for FY21
 
 
LIFE Insurance Corporation of India (LIC) assets at $463 billion exceed the Gross Domestic Product (GDP) of several economies, and it is ranked 5th globally in terms of life insurance Gross Written Premium (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). 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 is the largest asset manager in India with Rs 36.7 trillion Assets under management (AUM).
 
LIC’s AUM on a standalone basis was equal to 18 per cent of India’s GDP for FY21. 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 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’sindividualproductsportfolioinIndiacomprised32individualproductsandsevenindividual riders / and it’s group productportfolioinIndiacomprised10groupproducts,which included one group micro insurance products. In Fiscal 2019, Fiscal 2020, Fiscal 2021 and the six months endedSeptember30,2021--our individualagentswereresponsibleforsourcing95.81percent, 94.74 per cent, 93.80 per cent and96.82 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 InsuranceIndustrywas66.2per centbasedonNBP, anditsNBP was 1.96 times the total private life insurance sector and 8.9 times the NBP for the second largestplayerinthe IndianLife InsuranceIndustry.The NBPof the Indian Life Insurance is expected to grow at a CAGR of approximately18percentfrom Fiscal 2021 to Fiscal 2026 for individual business as compared to a CAGR of 17 pc in group business. CRISIL Researchforecasts thattheelderly population in India will increase from 116.8 million in 2015 to 316.8 million in 2050 andtheshareofelderlyinIndia’s population will almost double from 9 per cent in 2015 to 17 per cent in by 2050.