LIC to conduct valuation of its business

As a precursor to its IPO, LIC will soon begin to conduct the process of the valuation of its business. Addressing the media, LIC chairman M R Kumar said, “The Life Insurance Corporation of India Act would need to be amended for the public offering. The laws that would need to be changed include the ones on dividend distribution and creation of a separate fund.” Kumar further said, “LIC’s market share in terms of the first-year premium and the number of policies as of January end stood at 80% and 77.6% respectively. LIC has made a conscious decision to increase the share of individual regular premium policies, which has grown at the rate of 40%—the highest in recent years.”