Life Insurance Corp of India (1248Z IN)
Financials
India’s largest ever IPO - the government is looking to raise ~US$8bn for its 5% stake. In his 19-page report, Sumeet Singh runs the rule over this behemoth in the Indian life insurance space (market share of 60%+ in terms of both GWP and NBP). Positives: 1) Distribution strength stemming from its agent network. 2) Brand strength. 3) Industry growth expected to stay strong. Negatives: 1) Losing market share to private players. 2) Digital sales issues. 3) LIC has repeatedly been used to rescue government linked listings (most recently IDBI Bank). 4) Solvency ratio appears low vs. peers.
Edition: 130
- 04 March, 2022