LIC manages to grow activity 10% in FY21 amid Covid

LIC FY21: The Life Insurance Corporation (LIC) of India has managed to record double-digit growth in FY21. Despite the new business premium lagging the previous fiscal until February this year. The corporation’s chairman M R Kumar revealed on Friday that business growth for the year FY21 was 10 percent.

Moreover, figures by the insurance regulator reveal that for the 11 months ended February 2021. LIC had recorded a new business premium of Rs. 1,56,068 crore, which was 3 percent lower than the previous year. This was despite the premium for February 2021, at Rs. 10,404 crore, being 27 percent higher than the previous year.

On the other side, the premium for the life industry until February 2021 was Rs. 2,34,861 crore, a 0.6 percent increase. LICs share of the industry until February was around 69percent. Kumar was speaking at the launch of former Irdai member Nilesh Sathe’s autobiography ‘Never Say Die.

While Sathe, who rose through the ranks in LIC, went on to take senior responsibilities incorporation and the insurance regulator after being operated on thrice for cancer and numerous chemotherapy sessions. Pointing out that all LIC has the never-give-up attitude, Kumar said that despite going through their trials. 

However, an achievement that appeared very unlikely because of the initial lockdown and the fact most of LIC’s sales are agent-driven. Sathe is now a financial adviser to the National Highways Authority of India. Speaking at the event, Sathe said that the authority, despite challenges, managed to raise Rs. 65,000 crore during the year.

Meanwhile, Finance Minister Nirmala Sitharaman announced a proposal to conduct an initial public offering for LIC in the 2021 Union Budget. The IPO is expected to be held in FY22. The Government of India will remain the majority shareholder after the public listing.