Dear Zindagi: The listing can make LIC the most valuable company

Life insurance corporation (LIC), when it appears on the list, has the potential to approach directly to the top of the market capitalization classifications in national markets, as it is expected to emerge as the most valuable company in the country, ahead of the pesos Traditional heavy. Trusted industries or TCS.

LIC is the largest financial institution in the country with assets under management (AUM) of more than Rs 31 lakh crore. SBI Life Insurance , which belongs mainly to a public sector bank, has an AUM of Rs 1.6 lakh crore and is valued at Rs 89,400 crore.

Valued on the basis of its AUM, LIC would have a market cap of Rs 55 lakh crore. Currently, the most valuable company is Trusted industries with a market cap of Rs 8.8 lakh crore.

Following this assessment, the government can meet its goal of complete divestment of Rs 2.1 lakh crore by divesting 5% of SCI, said Nilesh Sathe, a former Irdai member.

Live plus Sin embargo, el jefe de la práctica de seguros de vida de la firma actuarial Milliman en India, tomó una nota cautelosa sobre esta valoración. Dijo que AUM por sí solo no puede ser un factor, ya que variaría según el producto. La valoración para el negocio ULIP sería diferente en comparación con el negocio tradicional, que será diferente del AUM obtenido de las políticas del grupo, dijo. Según los ejecutivos de la industria de la vida, LIC tiene una gran parte del negocio de prima única donde las ganancias son mucho plus bajas que las políticas de primas regulares.

However, there are obstacles to its inclusion, including an amendment to the Life Insurance Nationalization Act of 1956. According to the former president of LIC S B Mathur, the inclusion of the corporation will require modifications to the Law.

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