Profits of insurers, manufacturing firms cannot be compared, says LIC chief
Zee News
LIC's share capital was raised from Rs 100 crore to Rs 6,325 crore during September last year to help facilitate the IPO.
New Delhi: LIC Chairman M R Kumar on Monday said profits of insurance companies cannot be compared with that of manufacturing companies as dynamics of the businesses are different.
"Profit of insurance companies compared to other companies like manufacturing are different. In terms of surplus generation, more than Rs 50,000 crore (has been) generated in the past two years," he said during an interaction with reporters.
Out of the surplus, 95 per cent was going to policyholders. "When you look at 5 per cent, it appears to be small in size but then really it is not so," he noted.
Going forward, Kumar said the surplus distribution pattern is going to change.
The surplus in respect of the participating fund will be allocated between policyholders and shareholders in the ratio of 95:5 for fiscal 2022, 92.5:7.5 for each of fiscal 2023 and fiscal 2024, and then 90:10 from fiscal 2025 onwards.
