INSUBCONTINENT EXCLUSIVE:
11.5 lakh crore, much lower than what private insurers command.
Market capitalisation as a percentage of assets under management (AUM) is
lower for the state behemoth as LIC distributes about 95% of its surplus among policyholders
are significantly lower possibly due to higher bonus payouts to policyholders, sub-optimal underwriting practices and lower investment yield
LIC has a relatively lower net worth of Rs 679 crore as it shares its total surplus between policyholders and shareholders in the ratio of
95:5 irrespective of policy product mix
Also, more than 95% of the above 5% attributable to the shareholders is distributed as dividends to the GoI, the only shareholder and thus
said the valuation report by RBSA.
LIC has return on equity of 396.8% in FY19 compared to 18.8% of SBI Life or 24.6% of HDFC Life or 16.4%
of ICICI Prudential.
Finance Secretary Rajiv Kumar said that the government was aiming to float the IPO in the second half of FY21.
As per
ventures and associates, which are currently recorded at cost and the market value of these investments may be substantially higher
