Yes, Life Insurance Corporation of India or LIC is essentially a government company. It is the largest public sector life insurance company and institutional investor in India. Founded the year 1956 under the LIC Act, the company operates under the overall ownership of the Government of India and administrative control of the Ministry of Finance.
The Government of India holds approximately 96.5% stakes in LIC. Thus, it is a majority government-owned entity, even though it is not 100% owned anymore by the government due to partial disinvestment. LIC’s stocks are listed on both BSE and NSE.
Here is a quick overview of LIC
| Detail | Info |
| Founded | 1st September 1956 |
| Founder | Government of India |
| Headquarters | Mumbai, Maharashtra, India |
| CEO | R. Doraiswamy |
| Sector | Insurance |
| Number of Employees | 98,661 (2024) |
Company History
LIC traces its origins to Oriental Life Insurance Company, established in the year 1818 at Kolkata, West Bengal. In the year 1870, Bombay Mutual Life Assurance Society came into being as the first Indian-owned life insurance company, offering coverage to Indians at affordable rates.
Early 20th century witnessed the rapid growth of life insurance sector in India. In the year 1912, Indian Life Assurance Companies Act was enacted to regulate life insurance businesses. Subsequently, Insurance Act was enacted in 1938 to regulate the sector. On 19th June 1956, the Parliament of India passed the Life Insurance Corporation Act, 1956.
LIC was officially formed on 1st September 1956 by merging 245 Indian and foreign insurance companies. The Government of India contributed with an initial capital of INR 5 crore. In the 1970s and 80s, the company underwent rapid expansion, with sum assured on new policies crossing INR 7,000 crore in 1986.
LIC went public with India’s largest ever IPO in May 2022. The government divested a part of its stake, while retaining majority ownership.
Current Status
LIC is the biggest company in India’s life insurance sector, with over 50% overall market share. It serves 25-30 crore people, backed by a massive agent network and a strong rural presence. The company maintains a high claim settlement ratio of over 90% and operates a wide range of products, including term plans, pensions, ULIPs, health cover and government schemes.
LIC is headquartered in Mumbai, Maharashtra. It has a network of more than 2,000 branch offices, over 1000 satellite and smaller offices and 8 zonal offices located in Delhi, Mumbai, Chennai, Hyderabad, Kolkata, Kanpur, Patna and Bhopal.
Future Outlook
LIC is poised for strong growth in the coming years on the back of expanding insurance market, improving profitability and strategic shifts. The company is targeting a CAGR of 15% in premiums over the next three years.
