At $8.65 bn, LIC 10th most valued insurance brand globally: Report

Life Insurance Corporation, which is bound for the nation's largest share sale by March, is the strongest and the largest brand in the country with a valuation of $8.656 billion

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Life Insurance Corporation, which is bound for the nation's largest share sale by March, is the strongest and the largest brand in the country with a valuation of USD 8.656 billion (around Rs 64,722 crore), which also makes it the third strongest insurance brand globally, according to a brand valuation report.

According to the London-based Brand Finance, which is a brand consultancy, the market value of LIC will become Rs 43.40 lakh crore or USD 59.21 billion by 2022, and Rs 58.9-lakh crore or USD 78.63 billion by 2027.

LIC's brand value also climbed in overall global brand rankings by 32 places to become the world's 206th most valuable brand in 2021, from 238th slot in 2020.

According to this valuation, LIC is largest and strongest brand in the country with a valuation of USD 8.655 billion in 2021, which grew by 6.8 per cent from USD 8.11 billion in 2020, when the value of top 100 insurers declined by 6 per cent globally.

The corporation ranks first in brand strength amongst the competitor set with a score of 84.1 and it ranks third in brand strength globally after Poste Italiane of Italy and Mapfre of Spain and is also the 10th most valued insurance brand globally, according to the report prepared in November 2021 but is yet to made public.

Interestingly, the state-owned insurance behemoth gained in brand value by 6.8 percent last year, all other top 100 insurers saw their brand value decline by 6 percent from USD 462.4 billion in 2020 to USD 433.0 billion in 2021.

Of the top 10 as many as 5 are Chinese insurance companies, with by Ping An Insurance emerging the world's most valuable insurance brand, despite recording a 26 per cent drop in brand value. The US has two companies in the top 10, while France, Germany, and India have one each in the list.

This has LIC becoming the only domestic insurer to rank in top 10 list strongest brands and top 10 most valuable insurance brands.

At this valuation LIC could have commanded a market cap of USD 51.2 billion in 2021, marginally down from USD 53.71 billion in 2020 in dollar terms and in rupee terms it could be Rs 37.5 lakh crore in 2021 down 1.2 per cent from Rs 38.2 lakh crore in 2020.

The agency forecasts that LIC's value will touch Rs 43.40 lakh crore or USD 59.21 billion by the end of 2022, and become a Rs 58.9-lakh crore or USD 78.63 billion behemoth by 2027.

LIC has grown 151 percent since 2014 clipping at 14 percent annually. LIC percentage across all three pillars remains positive between 2020 and 2021 with a notably large growth of 11 per cent in brand performance measures. After four years of steady decline, the brand strength of LIC shot up by nearly 14 points between 2018 and 2021.