{"id":2827,"date":"2021-06-09T16:19:03","date_gmt":"2021-06-09T10:49:03","guid":{"rendered":"https:\/\/blog.tickertape.in\/?p=2827"},"modified":"2021-06-16T11:07:45","modified_gmt":"2021-06-16T05:37:45","slug":"10-facts-about-lic","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/10-facts-about-lic\/","title":{"rendered":"10 interesting facts you didn&#8217;t know about LIC"},"content":{"rendered":"\n<p>You must have heard of this tagline, \u201cZindagi ke saath bhi, Zindagi ke baad bhi\u201d. It\u2019s from the oldest, largest, and most profitable life insurance company in the country\u2014the Life Insurance Corporation of India (<a href=\"https:\/\/www.tickertape.in\/blog\/lic-ipo-date-price-review-news-application-and-details\/\">LIC<\/a>). Here are 10 facts about the insurance provider that may interest you. <\/p>\n\n\n\n<p><strong>This article covers:<\/strong><\/p>\n\n\n\n<ul><li><a href=\"#1\">Fact No. 1: Formed by a huge merger<\/a><\/li><li><a href=\"#2\">Fact No. 2: Only player in the industry for decades<\/a><\/li><li><a href=\"#3\">Fact No. 3: Kind institutional investor<\/a><\/li><li><a href=\"#4\">Fact No. 4: Shares most of its profits<\/a><\/li><li><a href=\"#5\">Fact No. 5: Multinational presence<\/a><\/li><li><a href=\"#6\">Fact No. 6: Big commissions for agents<\/a><\/li><li><a href=\"#7\">Fact No. 7: Biggest IPO expected in 2022<\/a><\/li><li><a href=\"#8\">Fact No. 8: Total assets comparable with a few global companies<\/a><\/li><li><a href=\"#9\">Fact No. 9: Massive customer base<\/a><\/li><li><a href=\"#10\">Fact No. 10: Guaranteed by the government of India<\/a><\/li><\/ul>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/10-facts-about-lic\/#Fact-No-1-Formed-by-a-huge-merger\" title=\"Fact No. 1: Formed by a huge merger\">Fact No. 1: Formed by a huge merger<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/10-facts-about-lic\/#Fact-No-2-Only-player-in-the-industry-for-decades\" title=\"Fact No. 2: Only player in the industry for decades\">Fact No. 2: Only player in the industry for decades<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/10-facts-about-lic\/#Fact-No-3-King-institutional-investor\" title=\"Fact No. 3: King institutional investor\">Fact No. 3: King institutional investor<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/10-facts-about-lic\/#Fact-No-4-Shares-most-of-its-profits\" title=\"Fact No. 4: Shares most of its profits\">Fact No. 4: Shares most of its profits<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/blog\/10-facts-about-lic\/#Fact-No-5-Multinational-presence\" title=\"Fact No. 5: Multinational presence\">Fact No. 5: Multinational presence<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/blog\/10-facts-about-lic\/#Fact-No-6-Big-commissions-for-agents\" title=\"Fact No. 6: Big commissions for agents\">Fact No. 6: Big commissions for agents<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/blog\/10-facts-about-lic\/#Fact-No-7-Biggest-IPO-expected-in-2022\" title=\"Fact No. 7: Biggest IPO expected in 2022\">Fact No. 7: Biggest IPO expected in 2022<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tickertape.in\/blog\/10-facts-about-lic\/#Fact-No-8-Total-assets-comparable-with-a-few-global-companies\" title=\"Fact No. 8: Total assets comparable with a few global companies\">Fact No. 8: Total assets comparable with a few global companies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tickertape.in\/blog\/10-facts-about-lic\/#Fact-No-9-Massive-customer-base\" title=\"Fact No. 9: Massive customer base\">Fact No. 9: Massive customer base<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.tickertape.in\/blog\/10-facts-about-lic\/#Fact-No-10-Guaranteed-by-the-government-of-India\" title=\"Fact No. 10:&nbsp; Guaranteed by the government of India\">Fact No. 10:&nbsp; Guaranteed by the government of India<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"1\"><span class=\"ez-toc-section\" id=\"Fact-No-1-Formed-by-a-huge-merger\"><\/span><strong>Fact No. 1: Formed by a huge merger<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Before independence, there were many loosely regulated insurance companies in India that were specific to location and sector. In 1956, the government of India nationalized 245 such companies and merged them to form Life Insurance Corporation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"2\"><span class=\"ez-toc-section\" id=\"Fact-No-2-Only-player-in-the-industry-for-decades\"><\/span><strong>Fact No. 2: Only player in the industry for decades<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>After the merger, the government restricted insurance business to government companies only. So there was no competition for 44 yrs, until 2000, when the government permitted private companies to enter the <a href=\"https:\/\/www.tickertape.in\/blog\/life-insurance-is-not-an-investment-heres-why\/ref=blog\">life insurance<\/a> sector.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"3\"><span class=\"ez-toc-section\" id=\"Fact-No-3-King-institutional-investor\"><\/span><strong>Fact No. 3: King institutional investor<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As of 31st Dec 2020, Life Insurance Corporation of India has a <a href=\"https:\/\/www.tickertape.in\/blog\/net-worth\/\">net worth<\/a> of over Rs 38,000 cr and a portfolio of 20 stocks like <a href=\"https:\/\/www.tickertape.in\/stocks\/gail-india-GAIL?ref=blog\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Gail India (opens in a new tab)\">Gail India<\/a>, <a href=\"https:\/\/www.tickertape.in\/stocks\/axis-bank-AXBK?ref=blog\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Axis Bank (opens in a new tab)\">Axis Bank<\/a>, <a href=\"https:\/\/www.tickertape.in\/stocks\/canara-bank-CNBK?ref=blog\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Canara Bank (opens in a new tab)\">Canara Bank<\/a>, <a href=\"https:\/\/www.tickertape.in\/stocks\/maruti-suzuki-india-MRTI?ref=blog\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Maruti Suzuki (opens in a new tab)\">Maruti Suzuki<\/a>, <a href=\"https:\/\/www.tickertape.in\/stocks\/titan-company-TITN?ref=blog\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Titan Company (opens in a new tab)\">Titan Company<\/a>, and more. It majorly invests in <a href=\"https:\/\/www.tickertape.in\/blog\/government-securities\/\">government securities<\/a>. LIC\u2019s investment in FY 2020 alone was around Rs 2.8 lakh cr, making&nbsp; LIC the biggest domestic institutional investor. The insurer is also a promoter of <a href=\"https:\/\/www.tickertape.in\/blog\/national-stock-exchange\/\">NSE<\/a> with around 12.51% stake. However, all these <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-equity\/\">equity<\/a> investments are still less than 20% of Life Insurance Corporation\u2019s total investments.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"4\"><span class=\"ez-toc-section\" id=\"Fact-No-4-Shares-most-of-its-profits\"><\/span><strong>Fact No. 4: Shares most of its profits<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>LIC invests most of its funds in government bonds, corporate bonds, and only a small portion in the <a href=\"https:\/\/www.tickertape.in\/blog\/how-to-invest-in-shares\/\">stock market<\/a>. 95% of the profit that comes from these investments goes to the policyholders in the form of returns and bonuses, and the remaining 5% goes to the owner, the government of India.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"5\"><span class=\"ez-toc-section\" id=\"Fact-No-5-Multinational-presence\"><\/span><strong>Fact No. 5: Multinational presence<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Life Insurance Corporation of India has been operational in multiple countries as a joint venture, a wholly-owned subsidiary, or through agents. As of today, they are present in Fiji, Mauritius, UK, Singapore, Bahrain, Bangladesh, Abu Dhabi, Dubai, Kuwait, Oman, Qatar, Kenya, Sri Lanka, Nepal, and Saudi Arabia.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"6\"><span class=\"ez-toc-section\" id=\"Fact-No-6-Big-commissions-for-agents\"><\/span><strong>Fact No. 6: Big commissions for agents<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Collecting massive funds requires a big team. Life Insurance Corporation works with more than 11 lakh agents for the distribution of its policies. It pays up to 20% of the premium amount as commissions to its agents. That\u2019s around Rs 21 cr in commissions as of Mar 2020.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"7\"><span class=\"ez-toc-section\" id=\"Fact-No-7-Biggest-IPO-expected-in-2022\"><\/span><strong>Fact No. 7: Biggest IPO expected in 2022<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In 2010, the government raised Rs 15,200 cr from the <a href=\"https:\/\/www.tickertape.in\/blog\/all-you-need-to-know-about-ipos\/?ref=blog\">IPO<\/a> of <a href=\"https:\/\/www.tickertape.in\/stocks\/coal-india-COAL?ref=blog\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Coal India (opens in a new tab)\">Coal India<\/a>, the biggest <a href=\"https:\/\/www.tickertape.in\/blog\/ipo-investment\/\">IPO<\/a> ever in the Indian <a href=\"https:\/\/www.tickertape.in\/blog\/how-to-invest-in-shares\/?ref=blog\">stock market<\/a>. Thereafter, the government has been planning to sell a 25% stake in LIC, which will fetch about Rs 1 lakh cr. This will be the largest IPO in the history of the Indian stock markets by a huge <a href=\"https:\/\/www.tickertape.in\/blog\/margin-requirements\/\">margin<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"8\"><span class=\"ez-toc-section\" id=\"Fact-No-8-Total-assets-comparable-with-a-few-global-companies\"><\/span><strong>Fact No. 8: Total assets comparable with a few global companies<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Total assets of LIC as of Mar 2020 was around Rs 32 lakh cr. To put that in perspective, Apple\u2019s assets in 2020 amounted to Rs 17 lakh cr and that of&nbsp;Exxon Mobile amounted to Rs 26 lakh cr. Life Insurance Corporation\u2019s total assets are even more than the GDP of 85% of countries in the world.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"9\"><span class=\"ez-toc-section\" id=\"Fact-No-9-Massive-customer-base\"><\/span><strong>Fact No. 9: Massive customer base<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If we try to make a country of LIC\u2019s policyholders, it will be the 4th most populated country in the world. Yes, you read it right. It has a customer base of about 29 cr policyholders.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"10\"><span class=\"ez-toc-section\" id=\"Fact-No-10-Guaranteed-by-the-government-of-India\"><\/span><strong>Fact No. 10:&nbsp; Guaranteed by the government of India<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Since the Life Insurance Corporation of India is a 100% state-run company, the government has guaranteed to settle claims in case it defaults. This is why people prefer LIC over private companies, even if the premiums of its <a href=\"https:\/\/www.tickertape.in\/blog\/why-should-you-buy-term-insurance-in-your-20s\/\">term insurance<\/a> are costlier than that of private insurance companies. The insurer stands 19th in the list of the most desired brands in India and 2nd in the BFSI sector after the <a href=\"https:\/\/www.tickertape.in\/stocks\/sbi-life-insurance-company-SBIL?ref=blog\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"SBI (opens in a new tab)\">SBI<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A firm in the life insurance sector for 64 years! Read 10 interesting facts about LIC, the Indian government-owned insurance and investment corporation<\/p>\n","protected":false},"author":46,"featured_media":2883,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[9,1749],"tags":[313,237,312,311],"acf":[],"modified_by":"Aradhana Gotur","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/06\/LIC.png?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/2827"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/46"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=2827"}],"version-history":[{"count":5,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/2827\/revisions"}],"predecessor-version":[{"id":2884,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/2827\/revisions\/2884"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/2883"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=2827"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=2827"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=2827"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}