The Strengths

The Strengths of LIC 1. LIC is owed by fully govt. of India, the only organization managed without any corruption 2. LIC has total assets of Rupees 5,52,447.330 croes [Think about the recent

Satyam computers Fiasco] Even banks have guaranteed only rupees 1 lakh per account 3. Investments in LIC fully guaranteed by govt. India 4. LIC serves our society for the last 50 years and celebrated its GOLDEN JUBILEE. Posted by rajasekaranlic at 11:33 PM

LIC STRENGTH-LIC OF INDIA IS BIGGEST INSURANCE COMPANY IN OUR WORLD IS A GOVT RECOGNIZED LIC OF INDIA COMPLETED 52 YEARS YOU TAKE A INSURANCE NOW SECURE YOUR LIFE IN FUTURE IS GRANTED FOR EXAMPLE:-1) YOU TAKE A POLICY YOUR CHILD TILL YOUR CHILD SHOULD COME ON HIGHER EDUCATION YOU THINK MY FINANCE INVESTED IN LIC OF INDIA LIC OF INDIA HELP FOR 2) YOU TAKE POLICY ALSO OWN PURPOSE IS A PENSION PLAN . 3) YOU TAKE A POLICY ALSO FAMILY MEMBER-WISE ALSO. FOR MORE DETAILS PLEASE CALL YOUR ADVISOR :-9769403217. EMAIL.ID:[email protected]

Life Insurance in India: The Beginning In 1870, Bombay Mutual Life Assurance Society came into existence that provided the right definition of life insurance premium. Normal rates were offered. The oldest Insurance Company in India would be the National Insurance Company Ltd. Founded in 1906; it is in business even today. Life Insurance in India was nationalized in 1956 by the incorporation of Life Insurance Corporation of India (LIC of India). All the private life insurance companies in business in India at that time were grouped under LIC. The freedom of private sector from some of the government regulations was established with the formulation of Insurance Regulatory and Development Authority (IRDA) Act in 1999. The IRDA started issuing licenses to private insurers in 2000.

Life Insurance Companies in India have their history dating back to 1818. The first Life Insurance Company in India was Oriental Life Insurance Company in Kolkata. It was started by the Europeans to provide insurance cover to the Europeans. A discrimination pattern was followed in the insurance premium charged. Higher premiums were charged for Indian lives as

they were considered in the high risk category.

Chennai: Finance minister P Chidambaram announced an enhancement of bonus for policy holders of the Life Insurance Corporation of India (LIC) on Tuesday. Under the whole life scheme of LIC, policyholders will enjoy a bonus of Rs 71 per Rs 1,000, he said while launching the LIC web portal for customers and agents. The policy holders of the endowment scheme will get a bonus of Rs 34-54 per Rs 1,000 and for money back scheme, it has been increased to Rs 32-45 per Rs 1,000. "This is in addition to the special bonus announced by the Prime Minister during the golden jubilee year of LIC, earlier this year," he said. LIC had earlier increased the bonus for pension policy holders and retained terminal bonuses, wherever applicable. "My goal is to make LIC a world class insurance company and it is very close to becoming world class," Chidambaram said. Highlighting the strengths and efficiency of LIC in becoming ?the best known brand in the country after the government' he said, "the opposition to opening up of the insurance sector is not from the LIC, but from others. LIC is very much sure of its strengths." Later, replying to a query, the minister said he would consider the capital restructuring proposal of Indian Bank.

SHAREHOLDER: Stuart Wilson | August 12, 2009 Article from: The Australian

ONE of the biggest challenges facing listed investment companies is their deep share-price discounts to the value of their portfolios. These types of investments are usually attractive to retail investors because they boast professional managers and provide a ready-made, diversified solution.

The bigger, better funds are also inexpensive, charging a fraction of the fees compared with traditional, unlisted equity funds. However, as the proliferation of listed investment companies gained pace over the past decade, these entities have struggled with share-price performance. The net-asset value, which reflects the total per share value of the entity's net assets at a particular date, is almost invariably higher than the share price of the entity. In some cases, the difference is substantial. In other words, the company would be worth up to 50 per cent more if it were wound up -- if all of the shares in the portfolio were sold and the cash sent to shareholders. There are a number of reasons for this. The first is that many of these investment companies have not performed well from a share selection and management perspective. If you expected your fund manager to underperform the market, you may not pay full price for the shares. For the worst-performing funds, potential investors ask themselves, 'How much is $1 worth in the hands of a fool'? Another reason for a discount relates to the management contract that is in place. Sometimes running for 25 years, and charging substantial fees irrespective of performance success, these agreements can be a major turn-off for investors. It could be a combination of these factors, or simply sentiment that has driven down prices. Whatever the reason, once the gap between stated net-asset value and the share price becomes wide enough, listed investment companies and funds must do something to restore value before moves are made by shareholders to turf them out. This recently occurred at Premium Investors Ltd, where in June a group of 120 shareholders called for a meeting to dump the existing directors and initiate a substantial equal-access share buyback -- not at the current share price, rather at a small discount to the net tangible asset value. Within a month Premium had agreed to the buyback, thereby convincing the shareholders that they should not be shown the door. The share price over this period has rallied. Last Friday, Van Eyk Three Pillars Ltd was targeted, with a similar approach to replace directors and initiate a share buyback at net-asset value. When releasing the requisition for a meeting, the existing management noted that it had been considering "capital management options", which is a hint that like Premium they will act quickly to wind up some, if not all, of their equity portfolio in an effort to appease restless investors. A warning has been served to all managers of Listed Investment Companies -- act now to remove the current discount to net-asset value or risk an embarrassing board challenge that, given the low esteem existing managers are held in by investors, could well be successful. Stuart Wilson is chief executive of the Australian Shareholders' Association