Life Insurance Corporation (LIC) chairman MR Kumar's term has been extended till March 13, 2022. The appointments committee of cabinet has approved the proposal of the department of financial services to extend the term of Kumar beyond his currently notified term, which expires on June 30, a statement by the secretariat of the appointments committee of the cabinet said on Wednesday.
Kumar's reappointment is crucial as the state-owned insurer is eying an IPO (Initial Public Offering) in the current fiscal year. Amid the Covid crisis, the Centre wants to raise funds by divesting stakes in state-owned entities. It is also aiming at mobilising Rs 90,000 crore by selling a 6-7 per cent stake in LIC.
LIC is India's 2nd-largest financial services institution with a Rs 31 lakh crore balance sheet, next to the country's largest bank, State Bank of India (SBI), which has assets of Rs 39.51 lakh crore.
LIC earned Rs 57,958 crore first-year premium and Rs 1,20,317 crore single premium in FY20. Renewal premiums were Rs 2,01,113 crore. These figures (including investment income) gave it net revenues of Rs 6.15 lakh crore. RIL reported Rs 3.65 lakh crore revenues in FY20. This shows the enormity of the task before LIC's valuers.
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