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Largest Life Insurer in India and 5th Largest Globally: Life Insurance Corporation of India Ltd. has been providing life insurance in India for more than 65 years and is the largest life insurer in India, with a 61.6% market share in terms of premiums (or GWP), a 61.4% market share in terms of New Business Premium (or NBP), a 71.8% market share in terms of number of individual policies issued, a 88.8% market share in terms of number of group policies issued for the nine months ended December 31, 2021, as well as by the number of individual agents, which comprised 55% of all individual agents in India as at December 31, 2021. LIC had the highest gap in market share by life insurance GWP relative to the secondlargest life insurer in India as compared to the market leaders in the top seven markets globally. According to RHP, this is due to the enormous agent network, strong track record, immense trust in the brand ‘LIC’ and its 65 years of lineage. LIC is ranked 5th globally by life insurance GWP and 10th globally in terms of total assets.

Largest Asset Manager in India: LIC is the largest asset manager in India as at December 31, 2021, with AUM (comprising policyholders’ investment, shareholders’ investment and assets held to cover linked liabilities) of ₹40 trillion on a standalone basis, which was more than 3.2 times the total AUM of all private life insurers in India, approximately 15.6 times more than the AUM of the second-largest player in the Indian life insurance industry in terms of AUM, and more than 1.1 times the entire Indian mutual fund industry’s AUM. LIC’s investments in listed equity represent around 4% of the total market capitalisation of NSE as at December 31, 2021.

Company Background: LIC was formed by merging and nationalizing 245 private life insurance companies in India on September 1, 1956, with an initial capital of ₹50 mn. From the company’s incorporation until 2000, LIC was the only life insurer in India. LIC was identified by IRDAI as a Domestic Systemically Important Insurer (“D-SII”) on the basis of size, market importance and domestic and global inter-connectedness in September 2020.

Brand Value and Product Width: LIC was recognised as the third strongest and 10th most valuable global insurance brand as per the “Insurance 100 2021 report” released by Brand Finance. The strength of a brand means the efficacy of a brand’s performance on intangible measures relative to its competitors and is determined by looking at the brand’s marketing investment, stakeholder equity and impact of those on business performance. The brand ‘LIC’ was also recognised by WPP Kantar as the second most valuable brand in India in the report “BrandZ” Top 75 Most Valuable Indian Brands” for 2018, 2019 and 2020. The company has a broad, diversified product portfolio covering various segments across individual products and group products. The company’s individual products comprise 1) participating insurance products and 2) non-participating products, which include (a) savings insurance products; (b) term insurance products; (c) health insurance products; (d) annuity and pension products; and (e) unit linked insurance products. Individual products include specially designed products for specific segments, such as special products for women and children and Micro Insurance products. In addition, the company offers riders that provide additional benefits along with the base product to cover for additional risks, such as accidental disability, death, critical illness and premium waiver on the death of the proposer.

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