SEMINAR REPORT

ON

ANALYSIS ON LIFE INSURANCE CORPRORATION

OF INDIA (LIC)

MASTER OF BUSINESS ADMINISTRATION (FINANCE)

2022-2024

SUBMITTED TO: DR. HARSANDALDEEP KAUR

SUBMITTED BY: SANJEEVANI

ROLL NO: 27642205112

UNIVERSITY SCHOOL OF FINANCIAL STUDIES

GURU NANAK DEV UNIVERSITY

I
 DECLARATION

I hereby declare that the seminar report entitled “ANALYSIS ON LIFE

INSURANCE CORPORATION OF INDIA” submitted to the GNDU
Amritsar, is a record of an original work done by me under the guidance of
DR. HARSANDALDEEP KAUR, professor of USFS dept. and this
report is submitted in the partial fulfilment of the requirements for the
award of the degree of Master of Business Administration (finance). The
report has not submitted to any other university or institute for the award
of any degree or diploma.

SANJEEVANI
27642205112

II
 ACKNOWLEDGEMENT

I take this opportunity to express my respect to all those who helped me in

duration of this project. Firstly, I would like to thank, with much
appreciation to our faculty and Professor for his great help, with their
guidance I finally completed my project. Secondly, I would like to express
my thanks and regard to my family and friends for their close association
encouragement and support for this task. I am highly privileged to thank
all the people, directly or indirectly related and the respondents for
cooperation and sparing a few moments from their busy schedule.

III
 INDEX
SR. NO CHAPTER SUB-TOPIC PAGE NO.
1. Introduction 1.1 LIC 1-7
1.2 History
2. Vision& Mission 2.1Vision 8-11
of company 2.2 Mission
2.3 Objectives
2.4 Roles

3. Board of 3.1 chairperson 12-24

directors 3.2government
nominee director 13
3.3managing
directors
3.4 executive 14-17
director
3.5independent 18
directors
19-24
4. Analysis of 4.1 Common 25
company size statement of
balance sheet
4.2 Common
size statement of 26
P/L account
4.3 Cash flow
statement
4.4 Trend 27
analysis
28
5. SWOT analysis 5.1 Strengths 29-30
5.2 Weakness 31
5.3
Opportunities 32
5.4 Threats 33
5.5 Conclusion 34
of SWOT
analysis
6. Conclusion conclusion 35-36
7. Bibliography 37

IV
 CHAPTER – 1

INTRODUCTION

1. INTRODUCTION
1.1 LIFE INSURANCE COPORATION OF INDIA

Life Insurance Corporation of India, is one of the largest and most trusted
insurance companies in India. With a rich heritage of over six decades, LIC
has emerged as a reliable provider of various life insurance products and
financial services. Established in 1956 with the nationalization of insurance
sector in India, LIC has played a significant role in promoting life insurance
as a key financial instrument for individuals and families. Its primary
objective is to offer protection, savings, and investment solutions to
policyholders, ensuring financial security and peace of mind. LIC is known
for its strong commitment to customer satisfaction, professionalism, and
integrity. The company has a widespread network of branches and agents
across the country, making its services easily accessible to customers and
ensuring personalized assistance and support. LIC's customer-centric
approach and emphasis on strong corporate governance have earned it the

1
trust and confidence of millions of individuals and businesses. Apart from
life insurance, LIC also offers a wide range of plans catering to different
needs and goals of policyholders. These include pension plans, health
insurance plans, child plans, and more. The company continuously
innovates its product portfolio to align with the changing requirements and
preferences of its customers. Over the years, LIC has achieved numerous
milestones and accolades, further establishing its position as a market
leader. It has consistently delivered long-term financial security to
policyholders and contributed to the economic growth of the nation.

LIC's unwavering commitment to providing reliable,

comprehensive, and affordable insurance solutions has made it a household
name in India. With a strong presence, excellent track record, and
customer-centric approach, LIC continues to be the preferred choice for
millions who seek financial protection and growth. It is an Indian
multinational public sector life insurance company headquartered in
Mumbai. It is India's largest insurance company as well as the largest
institutional investor with total assets under management worth ₹45.7
trillion (US$570 billion) as of March 2023. LIC offers various insurance
plans and policies to cater to the needs and requirements of different
individuals. Some of the types of plans are endowment plans, whole life
plans, money back plans, term assurance plans, and riders. LIC also
provides online services such as buying policies, paying premiums,
checking policy status, and changing address. LIC was established in 1956
by the Parliament of India to nationalize the private insurance industry in
India and to provide social security to the masses. LIC has a network of
over 4,000 branches, 1.5 million agents, and 29 crore policies in force.

2
LIC's motto is "Yogakshemam Vahamyaham", which means "Your welfare
is our responsibility “in Sanskrit taken from Bhagavad Gita.

LIC MOTTO
One of the first Indian companies to use information technology for
company operations and policy servicing was LIC. Beginning in 1964,
microprocessor-based computers gradually replaced the unit record
machines that were first introduced in the late 1950s. In the 1980s,
computers were also installed in Branch and Divisional Offices for Back
Office functions. Standard computer packages for Ordinary and Salary
Savings Scheme (SSS) Policies were created and put into use in the 1990s.
Over the years, we have been updating our systems with appropriate and
pertinent technologies. LIC of India currently offers touchpoints services
to consumers in 74 Customer Zones (CZEEs) located throughout the
nation. These CZEEs operate in shifts in various areas to provide
policyholders with services. Candidates can proceed further for more
details about LIC Of India, about LIC Company, information about LIC of
India, about LIC Of India Zonal Office, and about Life Insurance
Company.

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 1.1.1 DIGITALIZATION

• Digitalization has become very common and popular at the same

time. Just like digital banking, the corporation has also adopted the digital
platform to connect with their customers.

• Subsequently, the Life Insurance Corporation of India has created

a comprehensive online database for their customers over the world wide
web. With such a move, the corporation’s products and services are now
more accessible to the existing as well as potential customers. Their online
offerings include:

• Online forms for the products and/ or services

• Registration for e-services from LIC of India
• Policy schedule
• Status of policy
• Status of loan
• Status of claim
• Status of accrued bonus
• Revival quotation
• Certificate of premium payment
• Premium due calendar
• Policy bond/ proposal form image
• Claim history
• Registration of grievances

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1.1.2 VARIOUS INSURANCE PLAN
• Endowment plans
• Bima Jyoti
• Bachat Plus
• New Endowment Plan
• New Jeevan Anand
• New Bima Bachat
• Single Premium Endowment Plan
• Jeevan Lakshya
• Jeevan Labh
• Aadhaar Stambh
• Aadhaar Shila
• Whole life plans
• Jeevan Umang
• Term assurance plans
• Jeevan Amar
• Tech Term
• Money back plans
• New Money Back Plan – 20 years
• New Money Back Plan – 25 years
• Jeevan Umang
• New Children’s Money Back Plan
• Jeevan Tarun
• Jeevan Shiromani
• Bima Shree

5
 1.2 HISTORY

The Oriental Life Insurance Company, the first company in India to offer
life insurance coverage, was established in Kolkata in 1818 by Bipin Das
Gupta. Its primary target market was India. Surendranath Tagore had
founded Hindustan Insurance Society in the same time period, which later
became the Life Insurance Corporation. The Bombay Mutual Life
Assurance Society was formed in 1870, almost half a century later. It was
the first native insurance provider of Western India. Here is a brief
overview of its history:

- 1956: In 1956, parliamentarian Feroze Gandhi raised the matter of

insurance fraud via owners of private insurance agencies. In the ensuing
investigations, one of India's wealthiest businessmen, Times of India owner
Sachin Devkekar. In 1956 was sent to prison for two years. The Life
Insurance Corporation of India was established on September 1, 1956, after
the nationalization of the life insurance business in India. Prior to this, there
were several private insurance companies operating in the country.

LIC Building at Chennai, it was inaugurated in 1959.

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 - 1956-2000: LIC played a significant role in spreading life insurance
coverage across India, particularly in rural and economically
underprivileged areas. It established branch offices in various cities and
towns, bringing life insurance services closer to people.

- 1972: LIC Act Amendment: This amendment granted LIC the power
to expand into other areas of insurance, including general insurance, group
insurance, and pension plans.

- 2001: LIC entered the capital market by launching its subsidiary,

LIC Housing Finance Limited, offering housing loans and related financial
services.

- 2013: LIC acquired a 14.3% stake in the Industrial Development

Bank of India (IDBI), becoming the largest shareholder in the bank.

- 2020 - 2022: The government announced its intention to divest a

portion of its stake in LIC through an Initial Public Offering (IPO), which
is expected to make LIC a publicly listed company. Finance Minister
Nirmala Sitharaman announced a proposal to conduct an initial public
offering for LIC in the 2021 Union Budget. The IPO is expected to occur
in 2022.

The LIC announced it would open its IPO to the public on 4 May
2022, and the process would be concluded on May 9. Through this IPO,
the Government of India is now aiming to raise ₹21,000 crore, as opposed
to raising between ₹65,000 crore to ₹70,000 crore by diluting the 5% equity
earlier. As per the IPO price band for 3.5% stakes for ₹21,000 crore, the
valuation comes to around ₹6 lakh crore.

7
 CHAPTER – 2

VISION & MISSION OF COMPANY

2.1 VISION
"A trans-nationally competitive financial conglomerate of
significance to societies and Pride of India."

This means that LIC wants to be a leading and influential provider of

financial services across the world, and also contribute to the social and
economic development of India. LIC aims to be the go-to brand for life
insurance by consistently providing reliable and superior financial
protection to its policyholders. The company strives to build trust amongst
the public through its ethical practices and transparent operations. By being
customer-centric and offering a wide range of innovative products, LIC
seeks to fulfill the evolving needs of its diverse customer base. The vision
also emphasizes creating value for all stakeholders, including
policyholders, employees, shareholders, and society at large.

2.2 MISSION
"Ensure and enhance the quality of life of people through
financial security by providing products and services of aspired
attributes with competitive returns, and by rendering resources for
economic development."

LIC's mission revolves around the core principle of safeguarding

individuals and families against financial risks. The company understands
that life is full of uncertainties, and its primary objective is to provide
individuals with the necessary tools and resources to mitigate these risks

8
effectively. By offering various life insurance policies, LIC aims to ensure
that policyholders have a sense of security and peace of mind, knowing that
their loved ones will be financially protected in case of any. LIC also has
a mission statement that defines its purpose and goals. The mission of LIC
is to ensure and enhance the quality of life of people through financial
security by providing products and services of aspired attributes with
competitive returns, and by rendering resources for economic
development¹³. This means that LIC wants to offer its customers the best
possible solutions for their life insurance and investment needs, and also
support the growth and progress of the country. LIC has been fulfilling its
vision and mission since its inception in 1956, when it was formed by
merging 245 insurance companies and provident societies⁴. LIC is the
largest life insurance company in India, with an asset value of over
2,529,390 crores⁴. It has a wide network of branches, agents, and partners
across the country and abroad. LIC offers a variety of products and
services, such as term insurance, endowment plans, pension plans, health
insurance, micro insurance, group schemes, rural plans, etc. LIC also
invests in various sectors of the economy, such as infrastructure, housing,
education, agriculture, etc. LIC has been recognized as one of the most
trusted brands in India, and has won several awards and accolades for its
performance and social responsibility. LIC is committed to serving its
customers with honesty, integrity, and excellence.

2.3 OBJECTIVES
• The primary objective of the LIC of India is to spread the
importance of life insurance among the rural areas and to the people
belonging to the socially and economically backward classes. The

9
company functions with a view to provide such individuals with financial
assistance against death at a reasonable cost.
• The company aims to cater to the diverse life insurance needs of
the community depending on the changing social and economic
environment.
• The main objective of the LIC of India is to safeguard the interests
of the life insurers as well as act as a trustee in their individual and
collective capacities.
• To maximize the ability of savings by providing a wide variety of
life insurance products to choose from.
• The Life Insurance Corporation of India fully encourages the
participation and involvement of its employees and LIC agents so that they
work towards attaining the objectives of the company.
• Spread Life Insurance widely and in particular to the rural areas
and to the socially and economically backward classes with a view to
reaching all insurable persons in the country and providing them adequate
financial cover against death at a reasonable cost.
• Maximize mobilization of people's savings by making insurance-
linked savings adequately attractive.
• Bear in mind, in the investment of funds, the primary obligation to
its policyholders, whose money it holds in trust, without losing sight of the
interest of the community as a whole; the funds to be deployed to the best
advantage of the investors as well as the community as a whole, keeping in
view national priorities and obligations of attractive return.
• Conduct business with utmost economy and with the full
realization that the moneys belong to the policyholders.
• Act as trustees of the insured public in their individual and
collective capacities.

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 • Meet the various life insurance needs of the community that would
arise in the changing social and economic environment.
• Involve all people working in the Corporation to the best of their
capability in furthering the interests of the insured public by providing
efficient service with courtesy.
• Promote amongst all agents and employees of the Corporation a
sense of participation, pride and job satisfaction through discharge of their
duties with dedication towards achievement of Corporate Objective.
2.4 ROLES
• Supporting Government initiatives: LIC also supports government
initiatives like Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and
Pradhan Mantri Suraksha Bima Yojana (PMSBY) by providing coverage
to eligible beneficiaries.
• Investment in infrastructure: LIC invests in various infrastructure
and development projects, which help in the economic growth of the
country.
• Creating job opportunities: LIC provides employment
opportunities to thousands of Indians through its various branches across
the country.
• Supporting the rural economy: LIC plays a crucial role in
supporting the rural economy through its micro-insurance products, which
provide coverage to farmers and rural communities.
• Contribution to the GDP: LIC’s contribution to the Gross Domestic
Product (GDP) of India is significant, as it is one of the largest insurance
providers in the country.
• Loan Provider: Provides various loans like direct loans to
industries, housing loans, and loans to various national projects at
reasonable interest rates.

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 CHAPTER – 3

BOARD OF DIRECTORS

3 BOARD OF DIRECTORS
3.1 CHAIRPERSON

Shri. Siddhartha Mohanty

He replaced M R Kumar, who completed his term on March 13, 2023. The
government on Friday appointed Siddhartha Mohanty as the Chairperson
of the Life Insurance Corporation of India (LIC) till June 29, 2024.Shri
Siddhartha Mohanty took charge as Managing Director of LIC of India on
1st February, 2021. Shri Mohanty started his career as a direct recruit
officer with LIC of India in 1985 and worked in different capacities in
various departments giving him exposure to multi-dimensional experience
especially in the field of Marketing, HR, Investments, Legal and Personnel.
Prior to taking charge as Managing Director of LIC, he was Managing
Director & Chief Executive Officer of LIC Housing Finance Limited (LIC
HFL), one of the largest housing finance companies in India. He was also
LIC HFL’s Chief Operating Officer. Before joining LIC HFL, he was
Executive Director-Legal with LIC of India. He has also headed few

12
Divisions in the capacity of Senior Divisional Manager in-charge,
spearheading the Divisions to successfully achieve the business target. Shri
Mohanty is an MA and holds a Degree in Law. Other qualifications include
post-graduation in Business Management and Licentiate from the
Insurance Institute of India. His innovative style of working, strong
analytical ability, strategic thinking and capability to arrive at simple
solutions for complex problems have resulted in success in each of his
assignments. He has a broad understanding of the landscape of the industry
which helps him to draw unique strategies.

3.2 GOVERNMENT NOMINEE DIRECTOR

Shri. Suchindra Mishra

Nomination of Shri Suchindra Mishra Additional Secretary, Department of

Financial Services Director on the Board of the Life Insurance. Shri
Suchindra Misra is Additional Secretary in the Department of Financial
Services, Ministry of Finance, Government of India. He is from the 1992
batch of Indian Defence Accounts Service and has served in various
assignments within the Defence Accounts Department. He has also served

13
in the Ministry of Finance, Government of India as Deputy Secretary /
Director in the Department of Investment and Public Asset Management
and the Department of Expenditure and as Joint Secretary in the
Department of Financial Services. He is currently on the Board of Export-
Import Bank of India and holds additional charge of Chairman, NABARD.
He is an alumnus of Delhi University and XLRI-Xavier School of
Management, Jamshedpur.

3.3 MANGING DIRECTORS

Smt. Mini ipe

Smt. Mini Ipe, Managing Director of Life Insurance Corporation of India

since 2nd August, 2021 is a postgraduate in Commerce from Andhra
University. Smt. Ipe joined LIC in 1986 and has experience of more than
37 years in the Life Insurance Sector. Prior to taking charge as Managing
Director, she was Executive Director, Legal Department, LIC of India. Smt.
Mini Ipe was Zonal Manager in charge of South-Central Zone and was the
first Lady Zonal Manager (Incharge) of the Corporation. Smt Ipe has also
worked as Executive Director (International Operations), Director & CEO
of LICHFL Financial Services Ltd.

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 Shri. M. Jagannath

Shri M Jagannath, has taken charge as Managing Director of Life Insurance

Corporation of India on 13th March, 2023. Joining LIC in the year 1988 as
a Direct Recruit Officer, Shri Jagannath brings with him rich experience of
over three decades across various functions of the Corporation. Before
taking charge of the current assignment, he was the Zonal Manager (In
Charge) of Southcentral Zone, where he led the Zone’s transformation by
driving performance on vital metrics. Under his stewardship, the Zone
scripted newer heights in New Business growth by nurturing a
performance-oriented culture and driving a consumer-centric service
model. Earlier, he was Head of Bancassurance for the Southcentral Zone
and thereafter, the Regional Manager (Marketing) of the same Zone at
Hyderabad and Bangalore locations. He also held the helm of Ernakulam,
Dharwad and Bangalore-I Divisions in his earlier role as Senior Divisional
Manager Shri Jagannath’s international experience comes from his tenure
as Chief Executive Officer and Manager Director of LIC (Lanka) Ltd.,
Colombo, Sri Lanka between 2009 and 2013.Shri Jagannath holds a Post-
Graduate Diploma in Marketing, International Post Graduate Diploma in
Life Insurance, General Insurance & Risk Management from the Institute

15
of Insurance and Risk Management (IIRM), Hyderabad. He is an Associate
of the Insurance Institute of India, Mumbai.

Shri. Tablesh pandey

Shri Tablesh Pandey has taken charge as Managing Director on 01st April,
2023. Shri Tablesh Pandey is a Bachelor of Technology in Agricultural
Engineering. He is a qualified Associate Member of Actuarial Society of
India. He joined LIC in 1988 as a Direct Recruit Officer. He has a vast
experience in Insurance Sector and related fields. He previously served in
position such as Regional Manager (Information Technology) in Bhopal,
Patna & Chennai. He has held various positions such as Chief (Actuarial),
Chief (P&GS) and Executive Director (Investment-MID Office). Prior to
taking charge as Managing Director, he was Executive Director (ERM) and
Chief Risk Officer of the Corporation. His hobbies are reading, listening
music. He is associated with Heartfulness Meditation and he is also a
certified trainer of Heartfulness. He also loves meeting the people and
sharing his experiences.

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 Shri. Sat pal bhanoo

Shri Sat Pal Bhanoo joined Life Insurance Corporation of India as Assistant
Administrative Officer in October 1988. He holds a Bachelor’s Degree in
History (Honors) from Himachal Pradesh University, Shimla. Shri Sat Pal
Bhanoo was Zonal Manager (In- Charge) of Central Zone, Bhopal before
taking charge as Manging Director of the Corporation. He held various
other prominent positions in the Corporation such as Sr. Divisional
Managers of Bangalore-I & Shimla Divisions; Regional Manager (Micro
Insurance), Regional Manager (Corporate Communications), Regional
Manager (Personnel &Industrial Relations) of Northern Zone, New Delhi
and Additional Director, Zonal Training Centre, Bhopal. He was also Chief
(Mktg./Senior Business Associate), in Central Office Shri Sat Pal Bhanoo
considers Human Resources Development as the key factor in development
of the Organization and likes to meet people to motivate them to contribute
the best to the Corporation and to achieve higher goals in life.

3.4 EXECUTIVE DIRECTOR

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 Shri. R. Doraiswamy

Shri R. Doraiswamy has been serving as Executive Director (Information

Technology /Software Development) of LIC of India since 2022. He is a
Direct Recruit Officer with 37 years of experience in Operations,
Marketing, Technology and Academics. He has held senior positions like
Executive Director, Chief (IT/SD), Regional Manager of Pension & Group
Schemes and Regional Manager of Marketing through Chief Life
Insurance Advisor Schemes, Sr. Divisional Manager in-charge and
Marketing Manager of divisions before being elevated to the cadre of
Managing Director. He served as Research Associate at the prestigious
National Insurance Academy, Pune on deputation for 5 years. There, he
worked on various projects on Micro Insurance, Insurance Law and
Regulations, Product Development, as well as content development for
Post Graduate programs in Insurance Management & Financial Planning.
In the area of Information Technology in LIC of India, he has been
spearheading modernisation of Business Application, portals and mobile
applications, Automation of repetitive processes, centralisation of Unit
Linked Business, etc., apart from overseeing LIC's technology initiatives
for the IPO process. He is a Graduate in Mathematics from Madurai
Kamaraj University Fellow Member of the Insurance Institute of India and
a student member of the Institute of Actuaries of India.

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 3.5 INDEPENDENT DIRECTORS

Dr. Ranjan Sharma

Dr. Sharma holds master’s degree of arts from University of Allahabad,

Uttar Pradesh. He has also pursued his doctorate in philosophy (geography)
from Dr. Ram Manohar Lohia, Avadh University in 2011. Dr. Sharma an
Associate Professor at Shri Lal Bahadur Shastri Degree College, Gonda,
Uttar Pradesh has been associated with the Institute since 1990.Dr. Sharma
has an experience of around 33 years in the field of academics and
corporate governance.

Shri. Vinod Kumar Verma

Shri Verma holds bachelor’s degree in Arts from Purvanchal

University Jaunpur, Uttar Pradesh and is deeply involved in Business of
Electronics Goods and having experience and knowledge in the fields of
business, sales and marketing.

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 Prof. Anil Kumar

Prof Anil Kumar is Professor (Finance & Corporate Governance) at

Department of Commerce, Delhi School of Economics University of Delhi
after serving as Professor at Shri Ram College of Commerce for more than
30 years. He is also Chief Executive Officer (CEO) of DU Foundation. An
alumnus of SRCC and Harvard Business School, he did his post-graduation
in commerce from Delhi School of Economics, Delhi University. Prof.
Kumar holds a doctorate (Ph.D.) in Corporate Governance from the
University of Delhi. He is Distinguished Fellow of Institute of Directors
(IOD) India. Prof. Anil Kumar has contributed number of research articles
in national and international journals; authored more than ten books in
corporate governance and CSR; presented his research work at
international conferences in India and abroad; and has conducted several
executive development and training programmes for government officers,
corporate executives and directors.

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 Smt. Anjuly Chib Duggal

Smt Anjuly Chib Duggal holds a master’s degree in arts from Punjab
University. Smt Duggal is retired Indian Administrative Service officer
from the Punjab cadre (batch of 1981). Previously, Smt. Duggal has
worked, amongst other positions and areas, as Secretary in the Department
of Financial Services, Ministry of Finance, and as Secretary in the Ministry
of Corporate Affairs, Government of India. Smt. Duggal has also served as
Director on the boards of Reserve Bank of India and State Bank of India.

Shri. Guru Moorthy Mahalingam

Shri Gurumoorthy Mahalingam holds a master’s degree in science

(statistics) from Indian Institute of Technology, Kanpur and master’s
degree in business administration (International Banking and Finance)

21
from the University of Birmingham. Previously, he was, amongst others,
Whole-time member of SEBI and was also Executive Director of Reserve
Bank of India and has numerous years of experience in the financial and
Securities sector.

Shri. Raj Kamal

Shri Raj Kamal holds a bachelor’s degree of technology in mechanical

engineering from Indian Institute of Technology, Bombay and a post
graduate in Management from Indian School of Business, Hyderabad.
Previously, he was Chief Executive Officer of OYO Vacation Homes. Shri
Raj Kamal is a former IAS officer (1994-2002) and has served as District
Magistrate & as Director (Budget), Finance Dept. in MP/ Chhattisgarh.

Shri. Vankipuram Srinivasa Parthasarathy

22
 Dr. Parthasarathy holds a bachelor’s degree in commerce from
Gujarat University, a fellow member of the Institute of Chartered
Accountants of India and a member of the Institute of Chartered
Accountants in England and Wales. He has also done Advance
Management Program from Harvard Business School. Previously, Dr.
Parthasarathy was also the group Chief Financial Officer and group Chief
Information Officer of the Mahindra Group.

Shri. Vijay Kumar Muthu Raju Paravasa Raju

Shri Muthu Raju Paravasa Raju Vijay Kumar (M. P. Vijay Kumar) is
a Chartered Accountant, Cost Accountant and Company Secretary. He is
presently Executive Director and Group Chief Financial Officer at Sify
Technologies Limited, a company listed at Nasdaq. Shri Vijay Kumar is an
Independent Director on the boards of, amongst others, Geo jit Financial
Services Limited and Heritage Foods Limited. Shri Vijay Kumar is also a
member of the IFRS Interpretation Committee of International Accounting
Standards Board, member of IFRS Advisory Council, London and a fellow
of the Institute of Directors.

23
 Shri. Sanjeev Nautiyal

Shri Sanjeev Nautiyal is former Deputy Managing Director of State

Bank of India. He holds an M.B.A Degree and also a Certified Associate
of Indian Institute of Bankers (CAIIB). Shri Nautiyal held varied and
challenging leadership roles in his 36 years with SBI, major ones being:
• Dy MD (Financial Inclusion &Micro Markets)
• MD & CEO, SBI Life Insurance
• Chief General Manager, Ahmedabad Circle
• General Manager, Delhi Circle

24
 CHAPTER -4
ANALYSIS OF COMPANY (2021-2022)
4.1 COMMON SIZE STATEMENT ANALYSIS OF
BALANCE SHEET OF LIC

BALANCE SHEET Mar-21 Mar-22 Mar-23 %of 2021 %of 2022 %of 2023

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS
Equity Share Capital 100 6,325.00 6,325.00 0.00% 0.15% 0.14%
TOTAL SHARE CAPITAL 100 6,325.00 6,325.00 0.00% 0.15% 0.14%
Reserves and Surplus 6,260.69 4,084.14 39,344.40 0.16% 0.10% 0.86%
TOTAL RESERVES AND SURPLUS 6,260.69 4,084.14 39,344.40 0.16% 0.10% 0.86%
TOTAL SHAREHOLDERS FUNDS 6,360.69 10,409.14 45,669.40 0.17% 0.25% 1.00%
NON-CURRENT LIABILITIES 0.00% 0.00% 0.00%
Long Term Borrowings 0 0 0 0.00% 0.00% 0.00%
Deferred Tax Liabilities [Net] 0 0 0 0.00% 0.00% 0.00%
Other Long Term Liabilities 36,89,609.79 41,25,050.20 44,19,302.80 96.80% 97.51% 97.12%
Long Term Provisions 32,931.96 23,885.83 26,159.24 0.86% 0.56% 0.57%
TOTAL NON-CURRENT LIABILITIES 37,22,541.75 41,48,936.03 44,45,462.05 97.66% 98.07% 97.69%
CURRENT LIABILITIES 0.00% 0.00% 0.00%
Short Term Borrowings 0 0 0 0.00% 0.00% 0.00%
Trade Payables 0 0 0 0.00% 0.00% 0.00%
Other Current Liabilities 67,910.18 56,301.54 44,437.71 1.78% 1.33% 0.98%
Short Term Provisions 14,943.06 14,943.06 14,943.06 0.39% 0.35% 0.33%
TOTAL CURRENT LIABILITIES 82,853.23 71,244.60 59,380.76 2.17% 1.68% 1.30%
TOTAL CAPITAL AND LIABILITIES 38,11,755.68 42,30,589.77 45,50,512.20 100.00% 100.00% 100.00%
ASSETS
NON-CURRENT ASSETS
Tangible Assets 3,279.70 3,333.03 3,473.18 0.09% 0.08% 0.08%
Intangible Assets 25.63 20.5 15.38 0.00% 0.00% 0.00%
Capital Work-In-Progress 148.06 198.49 331.06 0.00% 0.00% 0.01%
Other Assets 0 0 0 0.00% 0.00% 0.00%
FIXED ASSETS 3,453.39 3,552.02 3,819.62 0.09% 0.08% 0.08%
Non-Current Investments 35,21,317.93 39,26,044.27 42,44,850.82 92.38% 92.80% 93.28%
Deferred Tax Assets [Net] 0 0 0 0.00% 0.00% 0.00%
Long Term Loans And Advances 1,07,783.34 1,09,875.64 1,15,562.43 2.83% 2.60% 2.54%
Other Non-Current Assets 0 0 0 0.00% 0.00% 0.00%
TOTAL NON-CURRENT ASSETS 36,32,554.65 40,39,471.93 43,64,232.87 95.30% 95.48% 95.91%
CURRENT ASSETS 0.00% 0.00% 0.00%
Current Investments 0 0 0 0.00% 0.00% 0.00%
Inventories 0 0 0 0.00% 0.00% 0.00%
Trade Receivables 0 0 0 0.00% 0.00% 0.00%
Cash And Cash Equivalents 30,293.25 37,432.14 38,353.46 0.79% 0.88% 0.84%
Short Term Loans And Advances 1,48,907.78 1,53,685.70 1,47,925.87 3.91% 3.63% 3.25%
OtherCurrentAssets 0 0 0 0.00% 0.00% 0.00%
TOTAL CURRENT ASSETS 1,79,201.03 1,91,117.84 1,86,279.33 4.70% 4.52% 4.09%
TOTAL ASSETS 38,11,755.68 42,30,589.77 45,50,512.20 100.00% 100.00% 100.00%

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 4.2 COMMON SIZE STATEMENT OF PROFIT &
LOSS ACCOUNT

PROFIT & LOSS ACCOUNT Mar-21 Mar-22 Mar-23 % change of 2021 % change of 2022 %change of 2023

INCOME
REVENUE FROM OPERATIONS [GROSS] 4,02,844.34 4,27,419.21 4,74,004.61 100.00% 100.00% 100.00%
Less: Excise/Sevice Tax/Other Levies 0 0 0 0.00% 0.00% 0.00%
REVENUE FROM OPERATIONS [NET] 4,02,844.34 4,27,419.21 4,74,004.61 100.00% 100.00% 100.00%
TOTAL OPERATING REVENUES 6,81,628.48 7,20,514.89 7,81,542.56 169.20% 168.57% 164.88%
Other Income 599.5 788.9 7,660.84 0.15% 0.18% 1.62%
TOTAL REVENUE 6,82,227.98 7,21,303.80 7,89,203.40 169.35% 168.76% 166.50%
EXPENSES 0.00% 0.00% 0.00%
Cost Of Materials Consumed 0 0 0 0.00% 0.00% 0.00%
Purchase Of Stock-In Trade 0 0 0 0.00% 0.00% 0.00%
Operating And Direct Expenses 0 0 0 0.00% 0.00% 0.00%
Changes In Inventories Of FG, WIP And Stock-In Trade 0 0 0 0.00% 0.00% 0.00%
Employee Benefit Expenses 26,755.18 30,310.58 40,093.90 6.64% 7.09% 8.46%
Finance Costs 112.49 85.31 75.99 0.03% 0.02% 0.02%
Depreciation And Amortisation Expenses 412.9 433.36 464.93 0.10% 0.10% 0.10%
Other Expenses 6,39,048.58 6,86,076.09 7,17,961.00 158.63% 160.52% 151.47%
TOTAL EXPENSES 6,71,330.32 7,07,527.36 7,45,691.22 166.65% 165.53% 157.32%
PROFIT/LOSS BEFORE EXCEPTIONAL, EXTRAORDINARY ITEMS AND TAX10,897.66 13,776.44 43,512.18 2.71% 3.22% 9.18%
Exceptional Items 0 0 0 0.00% 0.00% 0.00%
PROFIT/LOSS BEFORE TAX 10,897.66 13,776.44 43,512.18 2.71% 3.22% 9.18%
TAX EXPENSES-CONTINUED OPERATIONS 0.00% 0.00% 0.00%
Current Tax 7,993.97 7,902.23 5,302.24 1.98% 1.85% 1.12%
Less: MAT Credit Entitlement 0 0 0 0.00% 0.00% 0.00%
Deferred Tax 0 0 0 0.00% 0.00% 0.00%
Tax For Earlier Years 0 0 0 0.00% 0.00% 0.00%
TOTAL TAX EXPENSES 7,993.97 7,902.23 5,302.24 1.98% 1.85% 1.12%
PROFIT/LOSS AFTER TAX AND BEFORE EXTRAORDINARY ITEMS 2,903.69 5,874.21 38,209.94 0.72% 1.37% 8.06%
PROFIT/LOSS FROM CONTINUING OPERATIONS 2,900.57 4,043.12 36,397.39 0.72% 0.95% 7.68%
PROFIT/LOSS FOR THE PERIOD 2,900.57 4,043.12 36,397.39 0.72% 0.95% 7.68%

Total revenue decrease by .59% in 202

Total expenses decrease by 1.11% in 2022

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4.3 CASH FLOW STATEMENT

CASH FLOW Mar-23 Mar-22 Mar-21

NET PROFIT/LOSS BEFORE EXTRAORDINARY ITEMS AND4,7TAX3,770.67 4,26,995.36 4,07,534.71

Net CashFlow From Operating Activities 59,718.01 -3,135.49 55,723.07
Net Cash Used In Investing Activities -58,196.10 10,485.93 -54,185.87
Net Cash Used From Financing Activities -948.59 0 0
Foreign Exchange Gains / Los es 0 0 0
Adjustments On Amalgamation Merger Demerger Others 296.79 -109.4 173.06
NET INC/DEC IN CASH AND CASH EQUIVALENTS 870.11 7,241.03 1,710.25
Cash And Cash Equivalents Begin of Year 37,574.99 30,333.96 28,623.71
Cash And Cash Equivalents End Of Year 38,445.11 37,574.99 30,333.96
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 4.4 TREND ANALYSIS OF LIC

An unfortunate persistent trend for Life Insurance Corporation of

India (LIC) has been the relentless loss in market share to private sector
life insurers over the past decade. But India’s largest life insurer has not
thrown in the towel yet. In fact, so far in FY22, LIC has been quite
successful in keeping its heft in market intact. As the chart shows, LIC’s
market share has remained steady since April in the retail segment. In July,
the insurance behemoth’s share was 37 percent of retail in terms of
annualised premium equivalent (APE). Of course, this is a far cry from
above 50 percent it commanded several years ago. Even so, the life insurer
has managed to keep market share around 40 percent for more than a year
now. Given that it is a listed entity which would intensify the focus on
profitability, LIC is likely to pursue new business with new fervour. Its
strength lies in group insurance where it still commands market share in
excess of 60 percent. But retail is the most lucrative business and good for
margins. LIC would need to amp its game here.

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 CHAPTER - 5

SWOT ANALYSIS

5. SWOT ANALYSIS OF LIC

A SWOT analysis determines the strengths, weaknesses,
opportunities, and threats of a company. It is a proven management
paradigm that allows LIC to benchmark its business and performance
against that of its competitors and the industry as a whole.

This is a great tool for identifying where the business is doing well,
where it is failing, developing countermeasures, and determining how the
business can grow.

5.1 STRENGTHS
The unique skills of a company that gives it an edge in gaining more
market share, attracting more customers, and maximizing profits are
known as its strengths. The following are LIC’s strengths:

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 • Brand Image: In India, the LIC brand has a good
reputation. Yogakshemam Mahamyaham, which translates to “welfare for
all,” is the company’s slogan. In 2015, the Economic Times Brand Equity
Survey named LIC as India’s most trustworthy insurance provider.
• Asset Base: LIC has over USD 150 billion in assets
and is India’s largest investor, giving it significant clout in the Indian
financial system.
• Agent Network: LIC has a nationwide agent network
of 1,337,064 individual agents, 242 corporate agents, 89 referral agents, 98
brokers, and 42 banks, reaching every corner of India.
• International Subsidiary: LIC has a robust subsidiary
network that includes LIC Housing Finance Limited, LIC Cards Services
Limited, LIC Nomura Mutual Fund, LIC (Nepal) Ltd, LIC (Lanka) Ltd,
LIC (International), BSC, and LIC (Nepal) Ltd. (C).
• Various Services: A customer portal in LIC offers
various services to customers who can save time and even buy policies
online. Customers can now calculate premium, bonus amount, tax
calculation, check the status of their policy, calculate loan amount,
download form and pay premium online.
• Brand Reputation: The company has built a strong
brand reputation that offers a wide variety, transparency, and convenience
to its customers. So, if you also want to build & promote a positive brand
image, enrol in our online reputation management course to become an
expert in it.
• Financial Position: LIC’s high renewal rates provide
a clear view of future business and offer excellent profitability. It uses a
capital-efficient model with low operating costs. LIC is the largest

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insurance provider in India, with a market share of above 66.2% in new
business premium.
• The company offers participating insurance products
and non-participating products like unit-linked insurance products, saving
insurance products, term insurance products, health insurance, and annuity
& pension products.
• LIC has a history of over 65 years and is owned by
the Government of India.
• As of December 2021, LIC had an AUM of Rs 40.1
lakh crore, which is 17.0% of India’s GDP.
• LIC is ranked fifth globally by life insurance GWP
and 10th globally in terms of total assets.
• The company has delivered good profit growth of
71.6% CAGR over the last five years.

5.2 WEAKNESS
• Organizational Culture: Because LIC is so closely
associated with the government, it has a very loose and leisurely work
culture. This is a flaw in comparison to current private insurance firms that
are strategic thinkers.
• Poor Advertising Strategy: LIC spends less money on
advertising than commercial suppliers, which is evident in the quality of
the ads it distributes.
• Too Many Restrictions: Because LIC is a
government-owned firm, it is subject to a slew of regulations and is
constantly beset by bureaucratic hurdles. This slows down decision-
making at LIC.

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 • Overworked: LIC employs a significant number of
people, the majority of whom operate from their own offices. The
organization frequently faces difficulties in paying workers’ salaries and
resolving concerns.
• Often Slow to Respond to Changing Needs: A lot of
customers nowadays doubt their policies & insurances and LIC has been
unable to serve them on time.
• Privacy issues: A lot of customers nowadays have
privacy issues regarding whether to invest in such policies or not so this
can be one of the weaknesses that LIC could face.
• LIC has delivered a poor sales growth of 8.37% over
the past five years.
• LIC has been strongly associated with the
government and thus follows a very slack and slow-paced work culture.
• In comparison to its private counterparts, LIC does
not spend too much on advertisement and this shows in the quality of ads
that they release.
• The Company has a lot of restriction imposed on it
being a government entity and there are always red tape challenges

5.3 OPPORTUNITIES

• Cyber Threats as Opportunities: There have been

several instances of data breaches and security system breaches. Insurance
coverage against cybersecurity threats might be a tremendous opportunity
at a time when cybersecurity is a threat.
• Online Services: People have started looking more at
possibilities like insurance as a result of the expansion of internet services,

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and knowledge of it is now higher than it was previously. This gives labour-
intensive suppliers like LIC the option to save money by substituting
people with technology.
• Shift From Protection to Prevention: There is a
general trend toward risk prevention rather than risk mitigation, which
indicates that insurance companies should concentrate on risk prevention
rather than risk mitigation.
• Social Media: Huge organizations are leveraging such
tools to stay relevant and are seeking specialists for the same, so if you are
interested in the field, check out our social media marketing course to get
started.
• Lower Cost: LIC shifted to digital distribution as the
market changed and competition increased. These changes have resulted in
a significant decrease in the average cost of distribution services.
• The Indian insurance market is expected to grow at a
CAGR of 15% over the next five years 2.
• The Indian government’s focus on financial inclusion
and social security will drive growth in the life insurance sector.
5.4 THREATS
• Competition: Since insurance was privatized, LIC has
lost its lustre and now confronts intense competition from private insurance
businesses that have given the industry a new lease on life.
• Changes in Government: Because fiscal and
monetary policies vary with each new government, tactics must be altered
correspondingly. This results in a slew of issues.
• Technology: Nowadays, most financial service
providers use online banking and financial brokerage services to make

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technology an intrinsic element of their business. The LIC, on the other
hand, still has a lot of catching up to do in terms of technology.
• New Comers: Several new players have entered the
market and are gaining market share by taking market share from existing
companies. LIC is at risk because these new entrants could steal its
customers.
• The entry of new players in the market.

5.5 CONCLUSION OF SWOT ANALYSIS

In the Indian insurance business, LIC is the largest life insurance

corporation. Its powerful brand, which is backed up by years of experience
and a well-established network, has allowed it to stay at the top for a long
time. They employ a variety of marketing strategies, including internet,
offline, and direct marketing. Focusing more on digital marketing and
having a strong social media presence might help the organization improve
its marketing approach. To enable this rapid growth, they must ensure that
more and more people buy insurance online. The only way to achieve this
is to better serve customers to support the company’s growth.

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 CHAPTER- 6
CONCLUSION
6. CONCLUSION
Life Insurance Corporation of India (LIC) is the largest insurance
provider company in India, with a market share of above 66.2% in new
business premium. The company offers participating insurance products
and non-participating products like unit-linked insurance products, saving
insurance products, term insurance products, health insurance, and annuity
& pension products. LIC is owned by the Government of India and has a
history of over 65 years.

As of December 2021, LIC had an AUM of Rs 40.1 lakh crore, which

is 17.0% of India's GDP. Its investments in listed equity represented around
4% of the total market capitalization of NSE and more government bonds
than the RBI.

LIC is ranked fifth globally by life insurance GWP and 10th globally
in terms of total assets. It has a market share of above 61.6% in terms of
premiums, 61.4% in New Business Premium, 71.8% in a number of
individual policies issued, and 88.8% in a number of group policies issued
for FY2022.

The company has delivered good profit growth of “71.6% CAGR”

over the last five years. However, the company has delivered a poor sales
growth of “8.37%” over the past five years. The stock is trading at “9.39
times” its book value.

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 Here are some ratios for LIC:

Ratio Value

I. Market Cap: ₹ 4,28,770 Cr

II. Current Price: ₹ 678
III. High / Low: ₹ 754 / ₹ 530
IV. Stock P/E: 9.47
V. Book Value: ₹ 72.2
VI. Dividend Yield: 0.44 %
VII. ROC:149 %
VIII. ROE: 130 %
LIC of India functions with a network of 1,537,064 Individual Agents,
342 Corporate Agents, 109 Referral Agents, 114 Brokers and 42
Banks. LIC has 2,048 fully computerized branch offices, 113
divisional offices, 1,381 satellite offices and over 8 zonal offices with
the head office located in Mumbai. LIC was rated as the No. 6 Most
Trusted Service Brand of India by the Economic Times Brand Equity
Survey 2012. From the year 2006, LIC of India has been regularly
winning the ‘Readers Digest Award’. Also, as per the Brand Trust
Report, for 4 continuous years, LIC of India was reported to be India’s
most trusted brand in the BFSI category. The mission of the Life
Insurance Corporation of India is to enhance the quality of living of
the people by providing financial products and services that provide
competitive returns.

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6.1 BIBLIOGRAPHY
1) https://www.screener.in/company/LICI/.
(2) https://iide.co/case-studies/swot-analysis-of-lic/.
(3) https://www.mbaskool.com/brandguide/banking-and-financial-
services/1019-life-insurance-corporation-of-india-lic.html.
(4) https://www.screener.in/company/LICI/.
(5) https://iide.co/case-studies/swot-analysis-of-lic/.
(6)https://www.mbaskool.com/brandguide/banking-and-financial-
services/1019-life-insurance-corporation-of-india-lic.html.
(7)https://bizzbucket.co/lic-business-model-how-lic-makes-
money/.
https://www.comparably.com/companies/lic/mission.
(8) https://licindia.in/mission/vision.
(9)https://www.vedantu.com/commerce/life-insurance-
corporation-of-india-lic.
(10) https://bing.com/search?q=vision+of+LIC.
(11)https://testbook.com/banking-awareness/lic-notes.
https://en.wikipedia.org/wiki/Life_Insurance_Corporation.
(12) https://licindia.in/insurance-plan.
(13)https://licindia.in/.
(14) https://www.lic24.in/lic-policy-status/.

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