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Welcome to the presentation on Welcome to the presentation on LIC of IndiaLIC of India

One of the World’s Largest

Life Insurance Company voted No. 1 Most Trusted Service Brandvoted No. 1 Most Trusted Service Brand for 2008-09 by Brand Equity - Economic Times for sixth year in successionfor 2008-09 by Brand Equity - Economic Times for sixth year in succession

Mukesh soni (certified financially planer) 07597728942

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1956-Nationalisation of the life Insurance sector. Life Insurance CorporationLife 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.

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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.

2000 -The IRDA was incorporated as a statutory body.

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Macro Economic Trends

GDP grew at the rate of 6.7% for the year 2008-09 .

2009-10- GDP growth estimated at 7.2 %.Household Savings.- 2006-07 2007-08 2008-09 34.2 % 37.7 % 37.9 %. Household savings in financial assets-More

than 11 %

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Percentage Distribution of Financial Saving of the Household Sector (Gross)

Item 2006-07 2007-08 2008-09 #  Financial Saving 100.0 100.0 100.0  a) Currency 10.2 11.4 12.5b) Deposits 49.1 52.2 58.5 (Banks, NBFC etc.)c) Shares & 9.0 12.4 2.6 Debentures d)Claims on Govt. 3.0 -4.0 -3.1e) Insurance Funds 17.7 18.0 20.1 i) life insurance 17.1 17.4 19.5ii) postal insurance 0.3 0.4 0.3 iii) state insurance 0.3 0.2 0.3iv) Provident and 11.1 9.9 9.5 Pension FundP: Provisional, # : Preliminary Estimates. Source: RBI Annual Report 2008-09

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.69284.00 crores in 2008-09 as compared to Rs.78552.70 crores in the year 2007-08.

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 2009. While in Group Insurance the share of LIC was 71.95% and in Policies 85.24% by the end of March 2009. 07597728942

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Insurance Penetration

Low Insurance penetration- 2.8 % of GDPWorld Average- 6-9 %Highest in South Africa-15 %Still 75 % of Indian Population not covered by

InsuranceSo,there is a huge market for Life

Insurance---expected to grow at 20-30% for next 10-15 years.

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Our Mission and Vision

MissionEnsure & 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

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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.

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• 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 www.licindia.in 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.

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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 2008-2009

Total Premium Income : Rs. 157186.55 crore

Total Income : Rs. 200280.65crore

Payments to Policyholders : Rs 53250 crore

As on Rs. (in crores)

31.3.2007 6,74,514.7831.3.2008 7,72,753.7231.3.2009 8,73,551.35

As on Rs. (in crores)

31.3.2007 5,72,602.8031.3.2008 6,98,506.9131.3.2009 8,07,317.43

IndividualAssurances

Policies (in crores)

2007-2008 23.59

2008-2009 25.78

No. of policies : 3.58 crores

Sum-Assured : Rs. 390053 crores

First Premium : Rs. 35321 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 47100 claims every working day i.e. 2 claims settled every second.

Year Number Amount (in lakhs) Rs. (in crores)

2007-08 144.53 35,607.202008-09 149 37893.00

INVESTMENT IN GOVT. & SOCIAL SECTOR INVESTMENT IN GOVT. & SOCIAL SECTOR (Rs. IN CRORES)(Rs. IN CRORES)

Type of Investment As on ( ProvisionalType of Investment As on ( Provisional 31.03.07 31.03.07 31.03.08 31.03.0931.03.08 31.03.09 CENTRAL GOVT. SECURITIES 272498 297943 318673 CENTRAL GOVT. SECURITIES 272498 297943 318673 STATE GOVT. & OTHER GOVT. 64285 89234 110697STATE GOVT. & OTHER GOVT. 64285 89234 110697

GUARANTEED MARKETABLEGUARANTEED MARKETABLE

SECURITIES……………………………………………………SECURITIES…………………………………………………… Sub – Total ( A) 36783 387177 429370Sub – Total ( A) 36783 387177 429370 HOUSING & INFRASTRUCTUREHOUSING & INFRASTRUCTURE

INVESTMENTINVESTMENT a) HOUSING 22451 24325 34185a) HOUSING 22451 24325 34185 b) POWER 37881 41120 48090b) POWER 37881 41120 48090 c) IRRIGATION / WATER SUPPLY 7500 6649 6022 c) IRRIGATION / WATER SUPPLY 7500 6649 6022 & SEWARAGE & SEWARAGE d) ROAD, PORT & BRIDGES 1516 1154 7218d) ROAD, PORT & BRIDGES 1516 1154 7218 e) OTHERS ( Incl. Railways) 4398 8774 5274e) OTHERS ( Incl. Railways) 4398 8774 5274 Sub – Total ( B) 73746 82022 100789 Sub – Total ( B) 73746 82022 100789 TOTAL (A+B)TOTAL (A+B) 410529 469199 530159410529 469199 530159

Pension & Group Business Pension & Group Business & &

Social Security SchemesSocial Security Schemesin 2008-09in 2008-09

Pension & Group Schemes

Growth Social Security Schemes

No. of New lives

(in lakhs)

207-06 35 % 110.64

Premium Income (Rs. in crore)

12517.32 35 % 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 6th consecutive year)

Awards won by LICAwaaz 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 & 2009.

No.2 in Total Income

Our Proud Position

Selected Super Brands India Awards 2006-07 & 2007-08 & 2008-09

NDTV Profit Business Leadership Award 2000