Valued At $8.65 Billion, LIC Is World's Third Strongest Insurance Brand

Life Insurance Corporation is the strongest and the largest brand in India, with a valuation of $8.656 billion, making it the third strongest insurance brand worldwide, a Brand Finance report revealed.

According to the report, the market value of LIC will become Rs 43.40 lakh crore or $59.21 billion by this year, and Rs 58.9 lakh crore or $78.63 billion by 2027. LIC's brand value also surged in the overall global brand rankings by 32 places to become the 206th most valuable brand in 2021 globally, from the 238th slot in 2020.

As per this valuation, LIC, which is bound for the country's largest share scale, is the strongest brand in India, with a valuation of $8.655 billion in 2021. It grew by 6.8 per cent from $8.11 billion in 2020, when the value of top-100 insurers decreased by six per cent globally.

First In Brand Strength

Life Insurance Corporation ranks first in brand strength amongst the competitor set with a score of 84.1 and is on third spot in terms of brand strength globally after Italy's Poste Italiane and Spain's Mapfre. It is also the 10th most valued insurance brand globally, according to the report prepared in November 2021.

Interestingly, the state-owned insurance behemoth gained in brand value by 6.8 per cent in 2021, all other top 100 insurers noticed their brand value dip by 6 per cent from $462.4 billion in 2020 to $433.0 billion last year. Of the top 10, as many as five are Chinese insurance companies, with by Ping An Insurance emerging as the most valuable insurance brand globally, despite recording a 26 per cent drop in brand value, the report said, according to News18.

The US has two companies in the top 10, while France, Germany, and India have one each in the list. This has Life Insurance Corporation becoming the only domestic insurer to rank in the top 10 list of strongest and top 10 most valuable insurance brands.

Growth Of 151% Since 2014

Since 2014, LIC has grown 151 per cent, clipping at 14 per cent on an annual basis. The corporation's percentage across all three pillars remains positive between 2020 and 2021, with significant growth of 11 per cent in brand performance measures. After four years of steady decline, the company's brand strength shot up by nearly 14 points between 2018 and 2021.

On Tuesday, February 1, finance minister Nirmala Sitharaman announced in the budget speech that the initial public offer (IPO) of Life Insurance Corporation of India (LIC) is "expected shortly." The government is planning to raise up to Rs 1 lakh crore through selling shares in the LIC IPO, which could be India's biggest IPO to date. The LIC IPO, which is expected to come out in early March, is expected to fill the fiscal deficit.

Further, department of investment and public asset management (DIPAM) secretary Tuhin Kanta Pandey has said that most of the preparatory work is almost over with finalisation of the embedded value (EV) of LIC, the insurer will file a draft red herring prospectus (DRHP) by next week for its mega LIC IPO.

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