Wednesday, August 6, 2014

Best Indian Brands 2014: 'LIC has been a financial guardian angel'

Source: ET
Ajay Singh says, 
"The reason to get life insurance is to have someone take care of financial needs of your family if something goes wrong. Nobody does it better than LIC"

I didn't even consider any private insurance brands had to be only Life Insurance Corporation. It's like fill it, shut it and forget it. When you are investing in life, you would look for a life partner rather than somebody you are flirting with. It's always long term and that's why LIC.

I bought my first policy when I was 26, just four years into my first job. It's not that there were no options but it was an easy choice to make. The biggest reason to get life insurance is to have someone take care of the financial needs of your family if something goes wrong. And I don't think anybody does it better than LIC. I've also bought policies for my wife and 10 year-old daughter.

This year, I am planning to have a policy for my son who will soon turn two. What works best for LIC is the trust that the brand enjoys. It may be not be aggressive in terms of communications or may not have the best of customer service or maybe viewed by the new generation as a 'desi' brand, but that doesn't matter.

It's not a T20 but a Test match. The very thought that your money is safe with LIC is so comforting that any deficiency in service can be ignored. And what's wrong with being desi?

(The writer Ajay Singh works in an HR firm.)

Saturday, August 2, 2014

"LIC" - the largest profit earner among financial institutions and banks in India

LIC does not have a concept of profit in its business and its profits are known as Surplus Fund Transfer which is distributed among unit holders (95 per cent) and the government (5 per cent)

Source: Indian Express
LIC has managed to post 
a profit of Rs 26,384 crore!
Life Insurance Corporation, India’s largest financial institution, has increased its presence in the equity market with a 60 per cent rise in its investments in equities in FY14.

The corporation bought stocks worth Rs 53,373 crore during 2013-14 as against Rs 33,205 crore in fiscal 2012-13, making it the largest domestic investor in Indian markets, said an official. It has booked a profit Rs 21,257 crore from the capital market in the year ended March 2014 in spite of a challenging environment.

This is the second year in succession that LIC made bumper profits from the market as the corporation had realised a profit of Rs 21,000 crore in the previous fiscal.

However, LIC was unable to take on the combined might of foreign institutional investors in terms of inflows. During FY14, FIIs pumped in a net amount of

Wednesday, July 30, 2014

Know Your LIC...! (Profile 2014)

LIC Profile 2014

Friday, July 18, 2014

LIC to invest Rs2.25 trillion in markets this fiscal

Full Article: livemint
State-owned Life Insurance Corp. of India (LIC), the country’s biggest insurer, expects to invest at least `2.25 trillion in the financial markets in the year to next March, seeking to tap a potential upturn in the economy after the presentation of the national budget on 10 July.
The expected investment by LIC marks an increase of `15,000 crore, or 6.6%, in the money the insurer spent buying securities in the last fiscal year. The figure may be revised higher, said two senior officials at LIC, the single largest investor in India’s financial markets.
Most of the `2.25 trillion of estimated investment by LIC could be allocated to government securities because equity markets have been trading high for several months and the insurer typically is used to selling shares on market highs and buying stocks on lows.
In fiscal 2014, LIC earned `90,123.76 crore in first-year premiums. That makes up three-quarters of the total first-year premium collected by the life insurance industry, in which LIC competes against 23 private-sector firms.
Of about 6,000 listed firms, LIC held stakes in at least 361 at the end of March. Only 957 firms have disclosed their June-end shareholding pattern so far; LIC has a holding in 125 of them.
To read Full Article: livemint

LIC's Rs 1,280 crore rescue act for 3 banks

Source: DNA
A clutch of public sector banks are knocking at the doors of state-owned insurance giant Life Insurance Corporation (LIC) to raise funds.

At least three banks -- Central Bank of India, United Bank of India and Bank of Maharashtra -- will make a preferential allotment to LIC to raise funds urgently needed for expansion. Banks need more money to fund their growth and meet regulatory requirements.

Under preferential allotment, shares are allotted to a preferred institution without going to the open market.

Finance minister Arun Jaitley had said during

Saturday, June 21, 2014

Who wants to privatise LIC?

Finance Minister sought opinions from several sectors. While asking about Banks, Vice Chairman of Kotak Mahindra Bank adviced Government to sell LIC into shares to mobilise funds.
How will a man react, if he is sane and capable of thinking logically?
"I asked about banks, not about insurance industry or Government's needs of funds" might be the right answer.
"You take care of your institution - Kotak Mahindra Bank, we can very well take care of the Government" would have been the reply, if the FM had some self respect.
"First you administer properly your insurance arm - Kotak Mahindra Old Mutual Life Insurance Co. When you become better than LIC, come and advice us", would have been the apt reply, if he had some conscious.

But, he had sought opinion from LIC whether it can be listed.
What does it mean?

Allahabad High Court ordered IRDA to scrutinise all policies of SBI Life and if required wind up the company.
If LIC chairman or somebody else asks the Government to wind up SBI Life, will the Government write to SBI Life?

But, the Government is seriously seeking opinion from LIC, whether it can be listed.
That means...
It is the intention of the Government to privatise LIC. They knew how will LICians react. So, they are creating an illusion, as if, somebody is suggesting something and they are considering.
LIC Chairman aptly replied.
We also need to reply in the form of movements involving general public, against the Government, when it tries to proceed.
Be prepared...

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LIC Chairman replies to Finance Minister
Source: Indian Express
State-run Life Insurance Corporation (LIC) is against diluting its present character and listing the entity on the stock exchanges and has