LIC agents sell 15 policies every year, 4 times of private insurer agent

Life Insurance Corporation (LIC) agents are the most prolific when it comes to premium and number of policies sold, according to the Draft Red Herring Prospectus (DRHP) filed by the largest insurer on Sunday evening.  

According to statistics, LIC had the highest agent productivity both by premiums at Rs 413,000 and Rs 161,000 per agent in fiscal year 2021 and September 30, 2021, respectively. In terms of number of policies each agent sold 15.3 and 5.3 policies on average in fiscal 2021 and September 30, 2021, respectively.

Compared to this SBI Life, HDFC Life and ICICI Prudential Life sold 3.9, 1.3 and 0.9 policies for FY21. In terms of New Business Premium agent productivity for FY 21 stands at Rs 2,30,140, Rs 1,12, 714 and Rs 102,356, respectively.  

LIC had 583 MDRT members in CY 2020, which was the most among all Indian corporates operating in the financial services industry and ranked 25th globally. LIC had 16,567 agents (including 583 MDRT members) who met the criteria for MDRT agent status in CY 2020.

LIC had 1.35 million individuals in its agent network compared to 1.10 million individuals for the entire private life insurance industry as of March 31, 2021. The number of individual agents for LIC in India increased at a CAGR of 7 per cent between March, 2019 and March, 2021 compared to the next best player’s agency force CAGR of 5 per cent during the same period and the average of the private players agency force CAGR of 4 per cent during the same period.

LIC is expected to be the largest IPO to be listed in India, touted by many to be India’s Aramco moment. As per the DRHP, the government-owned insurer will have up to 31,62,49,885 (31.62 crore) equity shares of the face value of Rs 10 on offer through the offer for sale (OFS), representing 5 per cent of equity stake. There will be no fresh issue of shares. The DRHP also disclosed the LIC's embedded value at Rs 5,39,686 crore as of September 30, 2021.