LIC listing to boost transparency, and its credit profile

As a listed company, LIC will face more demanding disclosure requirements, resulting in increased transparency over its operations, and encouraging it to prioritize profitable underwriting and risk management, Moody’s Investor Service said. It will, in turn, boost its capacity to generate and grow capital internally.

“We see the arrival of external shareholders with experience in the insurance industry as a further key benefit of the IPO. We believe the presence of foreign stakeholders will bring particular benefits in the areas of capital adequacy, financial flexibility and governance standards, enhancing LIC’s credit profile,” Moody’s said.

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