Exclusive: LIC allocates dividend of Rs 2,698 crore to Govt for 2019-20, sources say
Life Insurance Corporation (LIC) has allocated a dividend of Rs 2,697.74 crore to the government for financial year 2019-20. As on Mar 31, 2019, the central government had received a dividend of Rs 2,660.60 crore from the former.
State-owned Life Insurance Corporation (LIC) has allocated a dividend of Rs 2,697.74 crore to the government for financial year 2019-20. As on Mar 31, 2019, the central government had received a dividend of Rs 2,660.60 crore from the former. During the year 2019-20, LIC generated a surplus of Rs 53,954.86 crore, according to the sources. For its policyholders, it has reserved a surplus of Rs 51,257.12 crores.
LIC's board on Jul 22, 2020, had approved the company's financial condition report. Financial results of UK and Mauritius branch businesses as at March 31, 2020 were also approved by the board. Because this, annual valuation of Fiji branch business as at Dec 31, 2019 was also given nod by the board.
"The bonus distribution among various generations of policyholders with different plans, policy terms and sum assured is aimed to be equitable ," one of the sources told Zee Business. Also, according to sources, before the listing of LIC, the government is planning to give bonus shares to its employees.
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DIPAM and LIC are working together to finalise on number of shares to be given to the employees and its timeline.
The government has a disinvestment target of Rs 2.1 trillion this fiscal. It hopes to garner significant chunk of non-tax revenue from LIC IPO, however, as per government sources, it is difficult to list it on domestic bourses this financial year because of the long-drawn-out process. DIPAM has not yet appointed the asset valuer and it will take around 5-6 months to complete the valuation considering the size of LIC. Already into the mid of current fiscal, chances are bleak that LIC's IPO can be completed this year.
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