Thread by @YashJain88

The Largest #IPO India Has Ever Seen & Even After Its Listing LIC Has Still Remained In The Spot Light!

LIC's Stock Is Down 28% From Its IPO Price

I Spoke To MR Kumar, Chairperson At LIC On All Opportunities & Uncertainities Around The Biz

#LIC #LICIPO #IPO #market #stocks

ON CORRECTION IN LIC'S STOCK PRICE

▪️LIC Stock Corrected Because Of Market Correction

▪️Don't See Any Concerns Around Biz

▪️LIC Is Doing As Good As Private Players On Biz Front

▪️LIC Investors Have To Remain Patient For Sometime

ON VNB MARGIN GROWTH

▪️Had VNB Margin Of 9.3% As On Sep 30, Pre-Bifurcated Margins Stood At 12%

▪️Looking At Growing Margin To At Least 15% In Medium Term

▪️Expect To Be On Par On Margin With Pvt Players (20-25%) In Long Term

ON EMBEDDED VALUE DISCLOSURES

▪️Working Calculations Around Embedded Value

▪️Will Release EV Figures Up To March (Q4) By End Of June
(Note: This Won't Reflect -Ve Impact Of Mkt Correction On LIC's EV)

▪️EV Disclosures Will Become Seamless Going Forward

ON OVERALL GROWTH (Premium, Non-PAR Biz, Mkt Share)

▪️Expect To Grow Premium By 10-15% CAGR

▪️Expect 40% YoY Growth In Non-PAR Segment

▪️Have Regained Mkt Share In Last 3-4 Mths

▪️FY23 To Be A Transformational Year

ON CHANGES IN APE MIX

▪️Non-PAR Is 6-7% Of APE Mix

▪️Will Try To Achieve 10% Of APE Mix Fm Non-PAR Pdts By FY23 End

▪️Targeting APE Mix Of 85:15 B/w PAR & Non-PAR In 1-2 Yrs

▪️Will Drive Margins Mostly By Change In APE Mix

ON CHANGES DISTRIBUTION MIX

▪️LIC has Derived Good Volumes From Bancassurance Distribution

▪️Currently Bancassurance Contributes 4-5% To Distribution Pie

▪️Want To Take Bancassurance Contribution To 10-12%

DOES CORRECTION MAKE MKTS ATTRACTIVE TO LIC NOW?

▪️Believe Current Mkt Levels Are Attractive For Buying

▪️LIC Has Already Started Buying Into The Indian Mkts

▪️Buying At Every Correction In Equity Mkts

▪️Mkt Will Take Some time To Correct & We Will Keep Buying

ON DIVIDEND (Shareholders)

▪️Dividend Policy Will Not Change In Short Term

▪️Going Forward People Can Expect Better Dividend

ON BONUSES (Policyholders)

▪️Expect Bonuses To Sustain For Policyholders Going Forward

▪️Will Give Equal Importance To Policyholders & Shareholders

ON THE PROPOSAL TO ALLOW LIFE INSURERS TO SELL HEALTH INSURANCE

▪️If Permitted, Will Look At Selling Health Insurance In An Aggressive Way

▪️Already Have The TPA Ecosystem Ready For Selling Health Insurance Pdts

ON IRDAI ASKING INSURERS TO REDUCE COMMISSION

▪️Regulator Asking Insurers To Reduce Commission Is Drastic

▪️Reduction In Commission Will be Disruptive For LIC

▪️Should Continue The Existing Commission Rates

▪️Not The Right Time To Talk About Reducing Commission

ON WHO THE NEXT LIC CHAIRMAN SHOULD BE

▪️Have A Lot Of Internal Strength At LIC With A Fair Sense Of Biz

▪️Thing Someone Internal Would Be A Better Fit To Become Next LIC Chairperson