IPO-bound LIC’s GRP grew 13%, sold 41 policies per minute during FY 2021-22

New Delhi: IPO-bound LIC of India recorded a 12.66 percent increase in Guaranteed Renewable Policy (GRP) in the financial year 2021-22 at Rs 1,43,938.59 crore against Rs 1,27,768.06 crore for the financial year 2020-21. During 2020-21, the individual non-single premium rose 8.82 percent to Rs 30,015.74 crore from Rs 27,584.02 crore as of the end of March 2021. The total first-year premium (FYP) of the life insurer rose by 7.92 percent to Rs 198,759.85 crore as compared to Rs 184,174.57 crore in the previous fiscal.

Individual single premiums increased by 61 percent to Rs 4,018.33 crore for the month of March 2022, compared to Rs 2,495.82 crore in the same corresponding period last fiscal. While, the Group Single Premiums increased by 48.09 percent to Rs 30,052.86 crore for the month of March 2022, compared to Rs 20,294.02 crore in March 2021. The LIC GRP's growth increased by 59.50% compared to the previous year.

The market share of LIC stood at 63.25 per cent in total first-year premium for the financial year 2021-22. In First Year Premium, the market share of LIC was 70.99 percent for the month of March 2022 over 63.68 percent for the month of March 2021.

The number of policies sold increased by 3.54 percent to 21,718,695 in the financial year 2021-22 from 20,975,439 in the previous financial year. The insurer sold 4,896,019 policies for the month of March 2022 against 4,667,952 policies for the month of March 2021, a rise of 4.89 percent.

LIC of India, which is expected to hit the capital market with an IPO in the first quarter of this fiscal, has an embedded value of Rs 5,39,686 crore as of September 30, 2021, according to the draft red herring prospectus, while the government plans to sell 316,249,885 equity shares.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)