The Life Insurance Corporation (LIC) of India, one of the country’s largest financial institutions, has announced that its Managing Director, Mr. M R Kumar Mohanty, has been appointed as the company’s new Chairman. The appointment comes after the previous Chairman, Mr. S K Roy, retired from the post in June 2021.
Mr. Mohanty, who is a veteran of the insurance industry with over three decades of experience, has been with LIC for the past 34 years. He has held various key positions within the company, including Executive Director (International Operations) and Chief Executive Officer (LIC Housing Finance Limited), before being appointed as the Managing Director in March 2019.
Mr. Mohanty’s appointment as Chairman comes at a time when LIC is preparing to go public, following the government’s announcement to divest a portion of its stake in the company. The IPO is expected to be one of the biggest in India’s history and is likely to raise billions of dollars.
Commenting on his appointment, Mr. Mohanty said, “I am honored to be appointed as the Chairman of LIC, one of the most iconic institutions in India. LIC has played a critical role in the development of the Indian insurance industry and the country’s economy as a whole. I am committed to ensuring that LIC continues to serve its customers with integrity, transparency, and professionalism, and remains a leader in the insurance industry.”
Industry experts have welcomed Mr. Mohanty’s appointment as the new Chairman of LIC, citing his extensive experience and deep understanding of the insurance industry. They believe that his appointment will provide much-needed stability and continuity to the company, which is undergoing significant changes as it prepares to go public.
The IPO of LIC is expected to be a landmark event for India’s financial markets, as it will be the first time that the government has divested its stake in the company since its inception in 1956. The government is expected to divest up to 10% of its stake in LIC, which is valued at around $100 billion.
The IPO is also expected to bring significant benefits to LIC, including greater access to capital, improved governance, and increased transparency. The company is expected to use the proceeds from the IPO to expand its operations and diversify its product offerings.
According to sources, the IPO is likely to take place in the second half of the current fiscal year, subject to regulatory approvals. The company is currently in the process of appointing investment banks and advisors for the IPO.
LIC is one of the largest insurance companies in the world, with over 290 million policyholders and a market share of over 70% in the Indian insurance market. The company offers a range of life insurance products, including term insurance, endowment plans, and unit-linked insurance plans, among others.
In recent years, LIC has been working to modernize its operations and expand its digital capabilities, in order to better serve its customers and stay ahead of the competition. The company has launched several new digital initiatives, including an online platform for policyholders, a mobile app, and a chatbot, among others.
In conclusion, the appointment of Mr. Mohanty as the new Chairman of LIC is expected to bring stability and continuity to the company, as it prepares to go public and undergo significant changes. The IPO of LIC is likely to be one of the biggest in India’s history and is expected to bring significant benefits to the company, including greater access to capital and improved governance. With Mr. Mohanty at the helm, LIC is well-positioned to capitalize on the opportunities ahead and continue to be a leader in the Indian insurance industry.
