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<ul><li><keyword id="7922409" type="General" weightage="20" keywordseo="lic-ipo" source="Orion">LIC IPO</keyword> is selling about 31.6 crore shares or 5% of the government's stake till the end of March.</li><li>To boost investment from its army of policyholders, LIC has reserved 10% shares from the total issue size for such investors.</li><li>LIC has a market share of 74.6% in terms of a number of individual policies issued in FY21.</li></ul>The government is all set to sell a small chunk of its shareholding to list the largest life insurer, Life Insurance Corporation of India (LIC). The initial public offering (IPO) comes with a number of perks for people who own insurance policies of LIC. LIC has about 29 crore policyholders and dominates a market share of 74.6% in terms of a number of individual policies issued in FY21. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">LIC IPO </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Shares for offer </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">31.6 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Embedded value </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹5.4 lakh crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Listing at </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">BSE, NSE </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Government pre holding in LIC </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">100% </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table>LIC has created a reservation quote for policyholders and employees wherein such investors will get a discount on the issue price. 10% reservation for policyholders along with some discount LIC has reserved 10% of the issue size for its army of policyholders and also plans to give some discount to such investors in the IPO. Not only policyholders, employees of the insurance company also have a quote for themselves with 5% of issue size reservation. “Policyholders may get a 10% discount on issue price,” Anshuman Khanna, Director at Value Prolific Consulting Services (ValPro) told Business Insider. Suppose the issue price of LIC IPO is ₹1,500 then the policyholder may get at ₹1,350 per share, which will give them an additional upside, said Khanna. Cap on investment Investors holding LIC policy cannot exceed their investment more than ₹2 lakh as most of such investors also come under the retail category. Such investors can bid under the ‘Policyholder Reservation Portion’ through the applications supported by blocked amount (ASBA) and the UPI mechanism. Mandatory to link PAN and have a demat account Only policyholders who have updated their PAN by February 28, 2022 can apply under policyholder's quota. Process to link your PAN details with the LIC: <ul><li>Visit LIC website <a href="http://www.licindia.in/">www.licindia.in</a> OR <a href="https://licindia.in/Home/Online-PAN-Registration">https://licindia.in/Home/Online-PAN-Registration</a></li><li>Keep your policy number ready, PAN, date of birth and e-mail ID, which needs to be filled in while updating your PAN.</li><li>You may update the records for all of your LIC policies using the above link.</li><li>You can also check whether your PAN Is registered in your policy or not by visiting the Corporation's website <a href="http://www.licindia.in/">www.licindia.in</a> OR <a href="https://linkpan.licindia.in/UIDSeedingWebApp/getPolicyPANStatus">https://linkpan.licindia.in/UIDSeedingWebApp/getPolicyPANStatus</a>?</li><li>Alternatively, you may also contact your LIC Agent for assistance.</li></ul>Joint life policy holders If you own a joint policy of LIC, then only one of the policy members can apply under the ‘Policyholder Reservation Portion’ category. The PAN number of the applicant bidding in the offer (you or your spouse) needs to be updated while linking the PAN. Also, the policy member applying for the IPO has to have a demat account in his/ her name and in case the demat account is joint, the applicant needs to be the first /primary holder of the demat account. Eligible policies All policies that have not exited LIC’s records by way of maturity, surrender or by way of death of the policyholder are eligible for policyholder reservation. Applied for LIC policy recently but did not receive policy document If you have applied for a LIC policy but are yet to receive the policy document, in that case, the draft red herring prospectus (DRHP) states that the policy should have been issued on or before the date when the DRHP was filed on February 13. No lock-in period Policyholders who were allotted equity shares under the reservation category can sell the shares anytime as per their choice. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/reliance-industries-adani-enterprises-future-retail-vedanta-and-other-hot-stocks-on-february-15/slidelist/89580792.cms">Reliance Industries, Adani Enterprises, Future Retail, Vedanta and other hot stocks on February 15</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/investment/news/russias-new-crypto-law-is-less-than-a-week-away-heres-what-we-know-so-far/articleshow/89582403.cms">Russia's new crypto law is less than a week away — Here’s what we know so far</a>

These are the discounts and perks LIC policyholders will get while applying for the IPO

<ul class="summary-list"><li>Hurricane Milton may cause major losses for catastrophe bond investors.</li><li>Cat bonds transfer the risk of weather events to investors, offering high returns in years with little damage.</li></ul>The back-to-back barrage of Hurricanes Helene and Milton could trigger big losses for investors in catastrophe bonds.The fixed income securities allow insurers and reinsurers to <a target="_blank" class="" href="https://markets.businessinsider.com/news/bonds/catastrophe-bonds-climate-change-us-treasury-yields-disaster-insurance-costs-2023-10">transfer risks associated with major weather events to investors.</a>Investors who buy cat bonds <a target="_blank" class="" href="https://markets.businessinsider.com/news/bonds/catastrophe-bonds-climate-change-us-treasury-yields-disaster-insurance-costs-2023-10">can see big returns</a> if it's a relatively quiet year for hurricanes and other natural disasters. As long as there are few extreme weather events or damage from any event is mild, investors continue to collect the relatively high yield on the bonds. That's <a target="_blank" class="" href="https://markets.businessinsider.com/news/bonds/catastrophe-bonds-climate-change-us-treasury-yields-disaster-insurance-costs-2023-10">what happened in 2023,</a> as there were just a few major hurricanes relatively tame in terms of the damage they brought to Florida and surrounding states.The Swiss Re Global Cat Bond Index surged 20% in 2023, nearly matching the S&amp;P 500's 24% gain last year. The solid returns reflected the sleepy hurricane season last year.However, on the other hand, a strong hurricane can trigger various clauses within catastrophe bonds, resulting in big losses for investors. The money that would otherwise flow to bondholders is instead used to help pay out money to policyholders affected by natural disasters. In 2022, Hurricane Ian caused about $60 billion of insured losses and triggered a big loss in cat bonds, with the Swiss Re Global Cat Bond Index plunging 10% in September 2022. The index dropped 2% for all of 2022.According to data from Artemis, 2022 was the only down year for the Swiss Re Global Cat Bond Index in 20 years.Cat bond investors could see a repeat of 2022, or worse this year, if the <a target="_blank" class="" href="https://www.businessinsider.com/hurricane-milton-timeline-see-storm-evolution-from-space-satellite-imagery-2024-10">worrying projections for Hurricane Milton pan out.</a> The storm is barreling towards the west coast of Florida as a Category 4 hurricane, scheduled to hit the state late Wednesday or early Thursday. Initial estimates suggest Milton could trigger more than $100 billion in damage, according to <a target="_blank" class="" href="https://www.reuters.com/business/finance/hurricane-milton-could-cost-insurers-60-bln-raise-reinsurance-rates-rbc-says-2024-10-09/">analysts at Jefferies,</a> with a massive storm surge expected to flood a wide swath of Florida's west coast.<a target="_blank" class="" href="https://www.reuters.com/business/finance/hurricane-milton-could-cost-insurers-60-bln-raise-reinsurance-rates-rbc-says-2024-10-09/">According to RBC,</a> Milton could cause insured losses of about $60 billion, which would likely be big enough to trigger losses on cat bonds."Market seems to be pricing in a similar impact from Hurricane Ian of a $60bn industry loss in 2022," RBC analysts said of Hurricane Milton.This comes just two weeks after Hurricane Helene ravaged parts of Florida and North Carolina, creating estimated losses for insurers of as much as $11 billion, according to an estimate from Verisk.The Stone Ridge High Yield Reinsurance Risk mutual fund, which owns cat bonds, has plunged 7% over the past month, erasing its year-to-date gains.Meanwhile, the Pioneer Cat Bond Fund has declined 2% in the past week.However, according to RBC, higher reinsurance rates implemented following Hurricane Ian could soften the blow for cat bond investors, depending on the severity of Hurricane Milton."Better reinsurance contract terms, broader earnings diversification and bigger reserve buffers should put the sector in better stead than before," RBC said.The potential for massive damage caused by Hurricane Milton, which is considered to be a once-in-a-generation event, is also dragging down global reinsurer stocks.Shares of Swiss Re and Munich Re are down 3% and 2% in the past week, respectively.

Owners of 'catastrophe bonds' are staring down big losses as Hurricane Milton  barrels down on Florida

<ul><li>The life insurance major, <keyword id="6367143" type="General" weightage="20" keywordseo="lic" source="Orion">LIC</keyword>, has a lot to offer to everyone, especially to its 29 crore policyholders in the IPO.</li><li><keyword id="7922409" type="General" weightage="20" keywordseo="lic-ipo" source="Orion">LIC IPO</keyword> is special to investors because it has a separate reservation quota for people holding LIC policies along with some discount on IPO floor price.</li><li>Here are answers to all your questions on how you can avail those benefits while applying for the IPO.</li></ul>Investors are eagerly waiting to get their hands on a piece of India’s largest life insurance company, which is about to launch the country's biggest initial public offering (IPO). More than that, the IPO is special for the 29 crore policyholders of the life insurer, who would be getting a preference on the shares. Here are answers to all your queries on how you can avail those benefits while applying for the IPO. <ol><li>When will the LIC IPO be launched? The IPO is expected to be completed within the end of March. </li><li>How to apply for LIC IPO? You need a demat account of your own from where you can subscribe to the LIC IPO. Click here for a step-by-step guide on how to open a demat account. </li><li>Who all are eligible to apply under the policyholder reservation quota? All policies that have not exited LIC’s records by way of maturity, surrender or by way of death of the policyholder are eligible for policyholder reservation.</li><li>What are the benefits of applying under the policyholder quota? LIC has reserved 10% of the issue size for its army of policyholders and also plans to give some discount to such investors on the issue price of the IPO.</li><li>Can senior citizens also apply for LIC IPO? Yes. Any person above 18 years of age can apply for this. The applicant should have a demat account and the PAN number should be linked with the policy. </li><li>Is there a maximum limit amount for policyholders to apply for the IPO? Investors holding LIC policy cannot exceed their investment more than ₹2 lakh as most of such investors also come under the retail category.</li><li>I hold a joint life insurance policy with my spouse, so can we both apply for policyholder reservation? No. If you own a joint policy of LIC, then only one of the policy members can apply under the ‘Policyholder Reservation Portion’ category.The PAN number of the applicant bidding in the offer (you or your spouse) needs to be updated while linking the PAN.The PAN number of the applicant bidding in the offer (you or your spouse) needs to be updated while linking the PAN.</li><li>Will there be any tax exemption if there is share allotment on investment in LIC IPO? No. Although there is a tax exemption for holding a LIC policy, there is none for investment in equities. </li><li>Will there be any lock-in period for selling the shares for policyholders ? Policyholders who were allotted equity shares under the reservation category can sell the shares anytime as per their choice.</li><li>If I bought an LIC policy last week, can I apply under the special policyholder quota? No. To apply under the special quota the policy should have been issued on or before the date when LIC’s draft red herring prospectus (DRHP) was filed, that is February 13.</li><li>Will those with the policy of Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) also be eligible to invest under the policyholder reservation category? No, one cannot. </li></ol>

LIC IPO – All your doubts cleared

Hedge fund managers are describing a presentation on a Florida insurer as the best short pitch they've ever seen

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These are the discounts and perks LIC policyholders will get while applying for the IPO

Bhakti Makwana

Owners of 'catastrophe bonds' are staring down big losses as Hurricane Milton barrels down on Florida

Matthew Fox

LIC IPO – All your doubts cleared

Bhakti Makwana

Hedge fund managers are describing a presentation on a Florida insurer as the best short pitch they've ever seen

Julia La Roche

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