New Delhi: Finance Minister Nirmala Sitharaman has proposed to list the largest insurer Life Insurance Corporation and the government is planning to offload its stake in the fully owned Life Insurance Corporation of India (LIC).
“The government plans to raise funds via LIC IPO,” said Nirmala Sitharaman at the Budget Speech 2020.
Currently, government holds 100 percent in LIC. The Life Insurance Corporation of India was founded in 1956 when the Parliament of India passed the Life Insurance of India Act that nationalised the insurance industry in India. In October 2019, LIC Chairman MR Kumar had said there is no plan for listing LIC and it was too early for the country’s largest insurance firm to go public.
LIC manages assets in excess of Rs 31 lakh crore as of July end this year.
LIC has seen a 291 percent jump in its income from investment in a 10 year period between FY09 and FY19. Data from the LIC Annual Report 2018-19 released last week showed that the income from investments stood at Rs 2,21,573.72 crore at the end of FY19.