LIC Emerges 10th Most Valuable Insurance Brand Globally; Books Record Profit Of Rs 37,000 Cr From Share Sale

Even as the total value of the world’s top 100 most valuable insurance brands declined by 6 per, LIC’s brand value increased by almost 7 per cent to $8.65 billion, as per the report. 

For the first time in 65 years, the country's largest life insurer Life Insurance Corp. of India (LIC) booked a record Rs 37,000 crore profit from share sales in 2020-21.

The insurer recorded the highest sale of share as the market touched its peak, and the company went on to register a 44.4 percent jump against its Rs 25,625 crore profit from stock sales in fiscal 2020, as per the Mint report. 

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In fact, this fiscal also witnessed the largest institutional investor buying shares worth ₹94,000 crores.

The report quoted managing director Mukesh Kumar Gupta saying the life insurer booked maximum profit through the churning of equity portfolio based on available opportunities which also aided a long-term high-performing portfolio. Gupta informed that the sale has been across sectors and driven by the focus on generating reasonable profits and available market opportunities.

Meanwhile, state-owned LIC has emerged as the third strongest and the tenth most valuable insurance brand globally, according to a report by Brand Finance Insurance 100 2021, a London-based brand valuation consultancy firm Brand Finance. Even as the total value of the world’s top 100 most valuable insurance brands declined by 6 per, LIC’s brand value increased by almost 7 percent to $8.65 billion, as per the report. 

Being the country’s largest life insurer, it managed assets to the tune of Rs 34 trillion. In terms of divestment, LIC remains the government’s biggest financial backer. The profits are mainly generated through the sale of shares in its large, non-linked portfolio, which comprises traditional life insurance policies.

This in turn helps the life insurer to pass on the profit through better bonuses and returns to policyholders and better dividends to the government. The record profit helps LIC to expand its investible surplus that goes on to aid stock markets during uncertain times besides garnering new customers because of its ability to generate such profits.