Welcome to the presentation on LIC of India One of the World’s Largest Life Insurance Company voted No. 1 Most Trusted Service Brand voted No. 1 Most Trusted Service Brand for by Brand Equity - Economic Times for sixth year in succession for by Brand Equity - Economic Times for sixth year in succession Mukesh soni (certified financially planer)

Life Insurance Corporation 1956-Nationalisation of the life Insurance sector. Life Insurance Corporation came into existence in the same year. The LIC absorbed 154 Indian, 16 non-Indian insurers and 75 provident societies— 245 Indian and foreign insurers in all. LIC had monopoly till the late 90s when the Insurance sector was reopened to the private sector

1993-The Government set up a committee under the chairmanship of RN Malhotra, former Governor of RBI, to propose recommendations for reforms in the insurance sector 1999-Following the recommendations of the Malhotra Committee report, the Insurance Regulatory and Development Authority (IRDA) was constituted as an autonomous body to regulate and develop the insurance industry The IRDA was incorporated as a statutory body

Macro Economic Trends GDP grew at the rate of 6.7% for the year GDP growth estimated at 7.2 %. Household Savings % 37.7 % 37.9 %. Household savings in financial assets-More than 11 %

Percentage Distribution of Financial Saving of the Household Sector (Gross) Item # Financial Saving a) Currency b) Deposits (Banks, NBFC etc.) c) Shares & Debentures d)Claims on Govt e) Insurance Funds i) life insurance ii) postal insurance iii) state insurance iv) Provident and Pension Fund P: Provisional, # : Preliminary Estimates. Source: RBI Annual Report

Trend in Life Insurance market Favourable macro economic environment and positive trend in growth of Household savings have significantly influenced growth of Life Insurance business during the recent years. The Insurance Industry has registered total FYP of Rs crores in as compared to Rs crores in the year LIC has been able to maintain a significant share in Life Insurance market in spite of intense competition and expanded market base. LIC as the largest insurer in Life Insurance Market maintained 58.06% share in premium and 70.52% in Individual policies in the financial year ending March While in Group Insurance the share of LIC was 71.95% and in Policies 85.24% by the end of March

Insurance Penetration Low Insurance penetration- 2.8 % of GDP World Average- 6-9 % Highest in South Africa-15 % Still 75 % of Indian Population not covered by Insurance So,there is a huge market for Life Insurance--- expected to grow at 20-30% for next years

Our Mission and Vision Mission Ensure & 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. Vision A trans-nationally competitive financial conglomerate of significance to societies & PRIDE OF INDIA

Our Values

Our Culture

Citizens’ Charter Our Commitment to the Community Provide insurance cover and financial security to every insurable person. Conduct all aspects of our business keeping in view its interest and national priorities. Provide them prompt, efficient and courteous service. Act as trustees of their funds and invest the funds to their best advantage. Conduct our business with utmost economy and on sound business principles.

All 2048 branches of LIC are computerized. LIC’s WAN covers 109 Divisions. Branches are connected by MAN. Online Premium Payments. A new Zonal office and 9 new Divisions opened this year. 807 Satellite Sampark offices opened to bring LIC to your doorstep IVRS facility available in 59 Urban centers. Kiosks installed in 150 Select Centers. Info Center working in 8 centers.

Our website offers Enterprise Portal for customers. Online Premium Payments through 8 banks and three payment gateways, billjunction.com, billdesk.com & timesmoney.com Premium payment through ATMs of Corporation Bank, UTI Bank Premium payment through ECS in select centres IVRS facility available in 59 Urban centers. Kiosks installed in 150 Select Centers. Info Center working in 8 centers.

International Operations LIC has three off-shore offices at Fiji, Mauritius, and U.K. Five Joint Venture Companies functioning at Saudi Arabia, Nepal, Sri Lanka,Bahrain,Kenya Representative Office opened at Singapore. Planning to enter Australian life insurance market

Policies to be guaranteed by Central Government The sums assured by all policies issued by the Corporation including any bonuses declared in respect thereof and, subject to the provisions contained in section 14 the amounts assured by all policies issued by any insurer the liabilities under which have vested in the Corporation under this act, and all bonuses declared in respect thereof, whether before or after the appointed day, shall be guaranteed as to payment in cash by the Central Government. - Section 37 of LIC ACT, 1956

INDIA’S largest Financial Institutional Investor both in equity market and term loans An Institutional Builder promoting NSE, NCDEX, LIC Mutual fund, Stock Holding Corporation of India, National Insurance Academy, Insurance Institute of India LIC’s e-portal (website) has won Webby’s Consumers voted best website award Our Proud Position - contd

 CHILD CAREER PLAN (Plan 184)  CHILD FUTURE PLAN (Plan 185)  JEEVAN AMRIT (Plan 186) Market Plus-1(Plan 191) Money Plus-1(Plan no.193)  PROFIT PLUS (Plan 188)  CHILD FORTUNE PLUS (Plan194)  JEEVAN AKSHAY 6 (Plan 189) Jeevan Nischay(Plan no.199) Wealth Plus(Plan no.801)

Financial Highlights during FY Total Premium Income :Rs crore Total Income :Rs crore Payments to Policyholders :Rs crore As onRs. (in crores) ,74, ,72, ,73, As on Rs. (in crores) ,72, ,98, ,07,317.43

Individual Assurances Policies (in crores) No. of policies : 3.58 crores Sum-Assured : Rs crores First Premium : Rs crores

Ratio of outstanding claims: 0.07% It s the largest number settled by any life insurer in the world LIC settles 1.49 Crore claims i.e claims every working day i.e. 2 claims settled every second. YearNumber Amount (in lakhs) Rs. (in crores) ,

INVESTMENT IN GOVT. & SOCIAL SECTOR (Rs. IN CRORES) Type of Investment As on ( Provisional CENTRAL GOVT. SECURITIES CENTRAL GOVT. SECURITIES STATE GOVT. & OTHER GOVT STATE GOVT. & OTHER GOVT GUARANTEED MARKETABLE GUARANTEED MARKETABLE SECURITIES…………………………………………………… SECURITIES…………………………………………………… Sub – Total ( A) Sub – Total ( A) HOUSING & INFRASTRUCTURE HOUSING & INFRASTRUCTURE INVESTMENT INVESTMENT a) HOUSING a) HOUSING b) POWER b) POWER c) IRRIGATION / WATER SUPPLY c) IRRIGATION / WATER SUPPLY & SEWARAGE & SEWARAGE d) ROAD, PORT & BRIDGES d) ROAD, PORT & BRIDGES e) OTHERS ( Incl. Railways) e) OTHERS ( Incl. Railways) Sub – Total ( B) Sub – Total ( B) TOTAL (A+B) TOTAL (A+B)

Pension & Group Business & Social Security Schemes in Pension & Group Schemes GrowthSocial Security Schemes No. of New lives (in lakhs) % Premium Income (Rs. in crore) %175.05

Solvency Margin IRDA made it mandatory for all the life insurance companies. Solvency Margin-Solvency margin, in simple terms, means the excess of assets an insurance company is required to maintain over its liabilities. Like capital adequacy ratio in banks, solvency margin is part of the prudential norms. To satisfy the solvency margins, insurers have to build up reserve as their business grows.

For example, if a company collects Rs 20 as premium and provides an insurance cover for Rs 100, the risk element is Rs 80. The solvency margin is calculated on Rs 80. Life insurance companies are expected to maintain a 150% solvency margin. LIC was the first one to protest the IRDA norms, but it subsequently made provision as per IRDA norms.

AC Nielsen ORG-MARG Survey 2004 to 2009 (For the 6 th consecutive year)

Awards won by LIC Awaaz Consumer Award 2007, 2008 & 2009 given by CNBC_TV Golden Peacock Global Award 2005, 2006 and 2007,2008,2009 Asia Insurance Merit 2008 & 2009 in Corporate Social Responsibility

Our Glory No.1 in Net Worth No.1 in Net Profit Reader Digest’s Trusted Brand Award 2006 & 2007,2008,2009 Business World’s Most Respected Co. Award 2007,2008 & No.2 in Total Income

Our Proud Position Selected Super Brands India Awards & & NDTV Profit Business Leadership Award 2000