New Delhi: Once LIC IPO hits the share market, around 60 per cent of the insurance business will be with listed companies, Additional Secretary in the Finance Ministry Amit Agarwal said. Earlier in July, the Cabinet Committee on Economic Affairs (CCEA) had given its in-principle approval for the listing of insurance behemoth Life Insurance Corporation of India (LIC).
LIC IPO Latest News – All You Need To Know
- The initial public offering of the state-owned LIC is part of the government’s efforts to raise Rs 1.75 lakh crore through disinvestment in the current financial year, as per PTI report.
- Speaking at an event to mark Actuaries Day, Agrawal said amid global challenges, India has continued to develop as an emerging economy with a financial system that has matured, deepened and achieved scale, as per PTI report.
- The needs of this emerging India are in many ways different, Agrawal said, adding the insurance sector, over the two decades since the introduction of competition and regulation, has matured with 69 insurers today as against only eight in 2000, according to PTI report.
- “A majority of these have crossed their initial breakeven phase. Once the proposed listing of LIC happens, about 60 per cent of the insurance industry business would be with listed entities. The sector as a whole has been growing at a pace significantly higher than that of the overall economy,” Agrawal was quoted as saying by PTI.
- Currently, there are four listed life insurers, and two in the non-life segment. State-owned re-insurer General Insurance Corporation of India is also listed on bourses, PTI report says.
Get real time update about this post directly on your device, subscribe now.