LIC market share falls below 70%

State-owned Life Insurance Corporation's (LIC) market share fell below 70 per cent in the financial year ended March 2018 as private insurers get more aggressive.

The market share of private insurers increased to 30.64 per cent in 2017-18, from 28.19 per cent in 2016-17.

"On the basis of total premium income, the market shares of LIC decreased from 71.81 per cent in 2016-17 to 69.36 per cent in 2017-18," said the annual report of the Insurance Regulatory and Development Authority of India (Irdai).

Further, the market share of private insurers in new business premium also saw an increase during 2017-18 over the previous year.

In the case of renewal premium, LIC had a share at 69.35 per cent (down from 72.31 per cent in the previous year).

This compares with 30.65 per cent (27.69 per cent in the previous year) share of private insurers. NEW DELHI: Only 22 per cent of the minority shareholders of IDBI Bank exercised their option of exiting the company in the open offer floated by LIC, which is taking majority stake in the debt ridden state-owned bank, sources said. Bulk of the minority shareholders, however, continue to hold the shares of IDBI Bank indicating their faith in the new management, they said. Existing shareholders feel value of their shares going up substantially in the future following management takeover by LIC, the sources added. The open offer for 2,04,15,12,929 shares was made last month at a price of Rs 61.73 a share. LIC had already increased its holding beyond 44 per cent before the open option. In August, the Cabinet approved the acquisition of controlling stake by LIC as a promoter in the bank through combination of preferential allotment and open offer of equity.