New Delhi: The Chairman of the country’s largest insurer Life Insurance Corporation Of India sounded optimistic about meeting the March 2022 deadline for the much awaited IPO of LIC.
MR Kumar, Chairman, LIC, while talking with Money Control laid out the IPO road map for the insurance giant, highlighted the key challenges faced on the way to getting listed on the bourses and how LIC is preparing for heightened compliance and answerability to all shareholders and investors post listing.
Apart from the IPO, stake sale of IDBI Bank is the other major task at hand for LIC. “Strategic investment in IDBI Bank has paid off,” said LIC Chairman, elaborating why he sees value in the bank even going forward and how LIC would like to continue its relationship with IDBI even after the sale is concluded.
He also gave an overview of the domestic insurance industry, flagging the high protection gap as a key challenge. While LIC continues to enjoy a 65 percent market share, it is eyeing a larger pie with its digital initiatives that are under way and an increased thrust on the bancassurance channel, the chairman said, as he shared the company’s plan to tap the millennials. He believes that the sector will continue to be highly competitive, and LIC is ready for it.
The chairman of the IPO-bound insurer sounded a bit cautious about the equity markets, even as LIC continues to be net buyer in the market despite booking profits over the past few months. He reiterated that LIC invests for the long haul and does not chase short-term gains.