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LIC new pension plus plan: 10 things to know about the scheme

LIC new pension plus plan: 10 things to know about the scheme

LIC new pension plus plan: Life Insurance Corporation of India (LIC)has introduced new pension plus plan. The plan can be purchased either as a single premium payment policy or regular premium payment. According to LIC, the plan is ‘suitable for young persons to make provisions for post-retirement life’, and can be purchased both offline (through agents/intermediaries) and online (from licindia.in). Its Unique Identity Number (UIN) is 512L347V01. LIC new pension plus plan: Here’s all you need to know about the scheme

1) This new pension plan came into effect from September 5, LIC said in a tweet.  2) The plan can be purchased either as a single premium payment policy or regular premium payment. Under the regular payment option, the premium shall be payable over the term of the policy.  3) The policyholder shall have option to choose the amount of premium payable and the policy term subject to minimum and maximum limits of premium, policy term and vesting age. 4) An option shall also be available to extend the accumulation period or deferment period within the same policy with the same terms and conditions as the original policy, subject to certain conditions. 5) This is a non participating, unit Linked, individual pension plan that helps build a corpus by systematic and disciplined savings which can be converted into regular income by purchase of an annuity plan on completion of term. 6) To invest the amount, the policyholder will have the choice to select a fund from a total of four; each premium shall be subject to a ‘Premium Allocation Charge
7) Four free switches for change of funds in a policy year are available.). 8) Guaranteed additions offered by LIC shall be payable as 5% to 15.5% on regular premium, and up to 5% on single premium.  9) In both cases, it has to be paid on the completion of a policy year. 10) The plan can be purchased offline through agents, other intermediaries as well as online from the LIC website.      

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New business premiums of life insurance companies jump 91% in July

New business premiums of life insurance companies jump 91% in July

New business premiums (NBP) of life insurance companies jumped 91 per cent year-on-year (YoY) in July, thanks to strong premium growth of state-owned Life Insurance Corporation (LIC).

According to data released by the Insurance Regulatory and Development Authority of India (Irdai), life insurers reported NBP of Rs 39,078.90 crore in July. While LIC’s NBP jumped 142 per cent to Rs 29,116.68 crore year-on-year, private insurers’ NBP grew 18.5 per cent to Rs 9,962.22 crore. In June, the life insurance industry grew 4.15 per cent in NBP, mainly due to the contraction in LIC’s premiums.

NBP is the premium acquired from new policies for a particular year. It is the sum total of first year premium and single premium accounted for during the year.

LIC’s strong premium growth in July is primarily on the back of a jump in group single premium and non-single premium. Private insurers have also reported sound growth in group single premiums and group renewal premium.

Among the top life insurers in terms of market share, SBI Life’s NBP was up 29 per cent in July, while ICICI Prudential Life’s NBP rose by 16.20 per cent, and Max Life’s increased by just 1.67 per cent. On the other hand, HDFC Life reported a contraction of 6 per cent in NBP during the same period.

In FY23 so far, life insurers’ have reported a 54 per cent YoY increase in premiums to Rs 1.12 trillion, with LIC’s premium witnessing 62 per cent growth and private insurers growing 39 per cent YoY. In the April-June quarter (Q1FY23), life insurers saw their NBP rise by 40 per cent over the same period a year ago, on account of lower base.

LIC has gained over 315 basis points in market share from June to July. Since March, LIC has gained over 500 basis points in market share in NBP terms.

The general consensus is that the premium growth of life insurers will remain healthy this year, given it’s the first year without any restrictions. While it is expected that demand for term, annuity, and guaranteed products will remain robust, unit-linked products may take a hit, given the volatility in equity markets.

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LIC gains 2% market share in new business premium in April-June quarter

LIC gains 2% market share in new business premium in April-June quarter

Life Insurance Corporation (LIC) has gained over 200-basis points (bps) market share in new business premium (NBP) during the April-June quarter of FY23.

According to Insurance Regulatory and Development Authority of India (Irdai) data, at the end of the June quarter, LIC’s market share in NBP stood at 65.42 per cent, compared to 63.25 per cent at the end of FY22.

However, its market share is still below the FY21 and FY20 levels. In FY21, LIC’s NBP market share was 66 per cent, while in FY20, it was 69 per cent.

NBP is the premium acquired from new policies for a particular year.

LIC remains the most dominant player in the life insurance industry for over 20 years.

However, LIC does not enjoy a similar market share on an annualised premium equivalent (APE) basis.

In FY22, LIC’s market share was 46 per cent in APE terms. It stood at 49 per cent in FY21 and 59 per cent in FY20.

LIC has a high share of single premium products due to its large group business. In fact, single premiums constitute over 70 per cent of its NBP. For private sector players, it is 20-30 per cent of their NBP.

Covid-related disruptions posed distribution challenges for LIC initially, given it has always been an agency-driven institution.

chart

However, it quickly invested in its digital infrastructure and managed to get its distribution network back on track.

LIC had been losing ground to private players because of diversifying its portfolio mix. Now, LIC is also looking to diversify its product mix and reduce reliance on par products.

It is looking to introduce more non-par products in the market.

On an APE basis, non-par is about 7 per cent of LIC’s portfolio and it plans to take it up to 12-15 per cent in 3-4 years. LIC is also looking to diversify its distribution strategy by focusing more on the bancassurance channel.

Currently, around 3-3.5 per cent of its business comes from the bancassurance route.

In the next five years, it wants bancassurance to contribute at least 15 per cent to the business. An email sent to LIC did not elicit a response.

In an interview to Business Standard last month, LIC chairperson MR Kumar had said, “LIC is a very large institution and we have come out of every tough situation stronger. In fact, post Covid recovery is a sign of our resilience and I hope the current rise in Covid does not really disrupt the way the first two waves did. We are confident that we will be able to retain the market share of 60-65 per cent that we have been able to achieve over a period of time.”

LIC’s shares closed at Rs 708.05 a piece on the BSE on Friday, up 1.42 per cent from the previous day’s close.

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LIC’s grey market premium falls by 90% ahead of listing: Report

LIC’s grey market premium falls by 90% ahead of listing: Report

As the much-awaited initial public offering (IPO) of Life Insurance Corporation of India (LIC) closed for subscription on Monday, demand for its shares in the grey market tanked.
In stock market parlance, the buying and selling of securities before they are officially issued on the stock market is called grey market.
In the unofficial market, shares of the insurance major exchanged hands at a minuscule premium of Rs 8-10 per share over the issue price, which is 90 per cent below the premium of Rs 100-105 per share it commanded a week earlier, according to an Economic Times report.
The initial public offering of Life Insurance Corporation of India has received robust response from investors as the insurance major’s offer has been subscribed nearly 2.9 times.
It received bids for 46.77 crore equity shares against IPO size of 16.2 crore equity shares.
The portion set aside for policyholders has been subscribed 5.97 times, employees bid 4.31 times the allotted quota, and retail investors 1.94 times, while the reserved portion of qualified institutional buyers has booked 2.83 times and that of non-institutional investors 2.8 times, as per reports.
Though the government has brought down the issue size from 5 per cent to 3.5 per cent, it was seen as a landmark public issue in the history of the Indian capital market, being India’s biggest IPO till date.
The IPO values LIC at Rs 6 lakh crore.
The issue offer of the LIC was in the price band of Rs 902 to Rs 949.
Also, the policyholders were offered a Rs 60 discount, while for retail investors, the discount was at Rs 45.
Department of Investment and Public Asset Management (DIPAM) Secretary, Tuhin Kanta Pandey, in a press conference on Monday, said, bidders will be allocated shares on Thursday and will be listed on stock exchanges on May 17.
–IANS
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(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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Life insurers log new business premium growth of 84% in April, led by LIC

Life insurers log new business premium growth of 84% in April, led by LIC

Life insurance companies logged 84 per cent growth in their cumulative new business premium at Rs 17,940 crore in April 2022, primarily helped by LIC, Irdai data showed.

All 24 life insurers had collected Rs 9,739 crore as new business premium during the same month a year ago.

The largest insurer, state-owned LIC’s first year premium or new business premium more than doubled (at 141 per cent rise) to Rs 11,716 crore as against Rs 4,856.76 crore in April 2021, the Insurance Regulatory and Development Authority of India (Irdai) said.

LIC commands the largest market share of 65.31 per cent, while the rest of the 23 private players have the remaining 34.69 per cent.

The rest of the private sector players witnessed over 27 per cent jump in their combined new business premium at Rs 6,223 crore. Their collective first year premium was Rs 4,882 crore in April 2021.

In terms of percentage growth, LIC was followed by Star Union Dai-ichi Life (122 per cent) and Tata AIA Life (107 per cent growth).

There was a 32 per cent jump in terms of number of policies/schemes at 13,21,098 in April this year by all the 24 players.

Of this, LIC witnessed 31.92 per cent increase in policy sales at 9,13,141, while the private players saw 33.87 per cent rise at 3,04,748.(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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