All you need to know about

LIFE INSURANCE CORPORATION OF INDIA

Issue Details
Issue Amount : ₹20,557 Crores
Post Issue Implied Market Cap: ₹600,242 crore
Total shares for sale : Upto 221,374,920 Equity shares
Face Value : ₹10 per share
Price Band : ₹902 to ₹949
Lot Size : 15 shares
Registrar : KFin Technologies Limited
Source : BRLM

Offer Breakup
Issue size
Category Allocation No.of Shares
Issue size (₹ in Cr)
Lower Band Upper Band

QIB 50% 98,828,089 8,914 9,379

NIB 15% 29,648,427 2,674 2,814

Retail 35% 69,179,663 5,929 6,254

Employee - 1,581,249 136 143

Policy Holder - 22,137,492 1,864 1,968

Total 100% 221,374,920 19,517 20,557

Source : BRLM
.
IPO timeline `
Issue opens on: `

09
Wednesday, May 4, 2022

Issue closes on:

Monday, May 9, 2022 MAY

12 Finalization of 13 Refunds/Unblocking
May 2022 basis of allotment May 2022 ASBA fund

16 Credit of equity 17 Trading

May 2022 shares to DP account May 2022 commences

Source - BRLM. Dates are tentative

The objective of the offer

1. To achieve the benefits of listing the Equity Shares on the Stock Exchanges

2. Carry out the Offer for Sale of up to 221,374,920 Equity

Shares by the Selling Shareholder (President of India,
acting through the Ministry of Finance, Government of India)

Further, it is expected that the proposed

listing of its Equity Shares will enhance the
visibility and brand image as well as provide
a public market for the Equity Shares in
India.

`
Source - RHP
About the company
Life Insurance corporation has been providing life insurance in India for more than 65
years and is the largest life insurer in India, with a 61.60% market share in terms of
premiums (or GWP), a 61.4% market share in terms of New Business Premium (or NBP),
a 71.80% 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. It had the highest gap in market share
by life insurance GWP relative to the second-largest life insurer in India as compared to
the market leaders in the top seven markets globally (in 2020 for the other players and in
Fiscal 2021 for its Corporation). According to CRISIL, this is owing to the enormous agent
network, strong track record, immense trust in the brand ‘LIC’ and its 65 years of lineage.
(Source: the CRISIL Report). It is ranked 5th globally by life insurance GWP (comparing the
Corporation’s life insurance premium for Fiscal 2021 to its global peers’ life insurance
premium for 2020) and 10th globally in terms of total assets (comparing the corporation’s
assets as at March 31, 2021 with other life insurers’ assets as at December 31, 2020).
(Source: the CRISIL Report).

Life Insurance corporation 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 ₹40.1 trillion on a standalone basis, which was (i) more
than 3.2 times the total AUM of all private life insurers in India, (ii) approximately 15.6
times more than the AUM of the second-largest player in the Indian life insurance industry
in terms of AUM, (iii) more than 1.1 times the entire Indian mutual fund industry’s AUM
and (iv) 17.0% of India’s estimated GDP for Fiscal 2022. (Source: the CRISIL Report). As
per the CRISIL Report, as at December 31, 2021, Life Insurance corporation’s investments
in listed equity represented around 4% of the total market capitalization of NSE as at that
date. (Source: the CRISIL Report).

Life Insurance corporation was formed by merging and nationalizing 245 private life
insurance companies in India on September 1, 1956, with an initial capital of ₹5.00 crore.
From its incorporation until 2000, it was the only life insurer in India. Life Insurance
Corporation was identified by IRDAI as a Domestic Systemically Important Insurer
(“D-SII”) on the basis of size, market importance and domestic and global
interconnectedness in September 2020.

Source : RHP
 Strengths
5th largest life insurer globally
by GWP and the largest player in
the fast growing and
under-penetrated Indian life
insurance sector
Largest asset manager in
India with an established
track record of financial
performance and
profitable growth
Source : RHP
Risks
₹ ₹
Actual claims experienced and
other parameters are different
from the assumptions used in
pricing its products and setting
reserves for its products
The continuing effect of
the COVID-19 pandemic
Source : RHP
Highly experienced and
qualified management team,
distinguished board and
strong corporate governance
framework
Trusted brand and a
customer-centric business
model
Any regulatory changes or Adverse persistency metrics
market developments that
adversely affect sales of
the participating products
Any unfavorable publicity
harming the brand name
and reputation
Presence across India
through an omni-channel
distribution network with
an unparalleled agency
force
Robust risk
management
framework
or an adverse variation in
persistency metrics
Interest rate
fluctuations
Important Financial Data

As at As at As at As at
Particulars
December 31, March 31, March 31, March 31,
(in Rs crore)
2021 2021 2020 2019

Total Assets
- 20,275.54 323,912.43 340,153.55

Net worth# 8,230.50 6,514.64 854.65 815.33

Premium
Earned 285,341.93 405,398.50 382,475.52 339,971.63

Income from
226,253.73 285,520.42 242,836.31 225,043.54
Investments

EBITDA 1,756.97 2,980.35 2,718.52 2,642.37

Net Profit for 1,715.31 2,974.14 2,710.48 2,627.38

the period

Basic EPS (₹) 2.71 4.70 4.29 4.15

FYXX

RONW (%) 20.84 45.65 317.14 322.25

Source : RHP

Peer Comparison
Name of Company Face Value Total Premium Net Profit EPS (₹) Closing Price Indian Market
Net worth NAV P/E RONW
(₹ Per Share) (₹ in billion ) (₹ in crore) per share Embedded capitalization
(₹ in crore) (₹ per Ratio for FY 2021
as on Value @ to Indian
share) (%)
April 22, (₹ in billion) Embedded
Basic Diluted
2022 Value

At the Floor
Life Insurance Price: 191.82
Corporation of India 10 4,058.50 2,974.14 4.70 4.70 6,514.64 10.30 45.65 NA 5,396.86 [.]
At the Cap
Price: 201.91

Listed Peers#

SBI Life Insurance

Company Limited 10 502.50 1,455.85 14.56 14.55 10,400.44 103.99 78.16 14.00 1,137.25 302.0 3.77

HDFC Life Insurance

Company Limited 10 385.80 1,360.87 6.74 6.73 8,637.72 42.75 82.33 15.75 554.05 295.40 3.96

ICICI Prudential Life

Insurance Company 10 357.30 956.16 6.66 6.65 9,119.42 63.51 78.81 10.48 524.10 302.0 2.49
Limited
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For more details refer offer documents on sebi www.sebi.gov.in

The securities quoted are exemplary and are not recommendatory. Such representations are not indicative of future results.
Source of statistical information, charts, graphs etc – RHP, DRHP, addendum and Moneycontrol.

Investments in securities market are subject to market risks, please read all the related documents carefully before investing.
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