Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Life Insurance  of India / Equity Capital Markets

<ul>
<li>Government of India (GoI) is now said to be looking to raise around US$6-7bn via selling a stake in Life Insurance Corporation of India (LIC) in its upcoming India IPO.</li>
<li>As of FY21, LIC was the largest life insurer in India with a 64.1% market share in terms of GWP, a 66.2% market share in terms of NBP.</li>
<li>In this note, we undertake a peer comparison and look at the implied multiples at the rumored valuations.</li>
</ul>


Government of India (GoI) is now said to be looking to raise around US$6-7bn via selling a stake in Life Insurance Corporation of India (LIC) in its upcoming India IPO.
As of FY21, LIC was the largest life insurer in India with a 64.1% market share in terms of GWP, a 66.2% market share in terms of NBP.
In this note, we undertake a peer comparison and look at the implied multiples at the rumored valuations.


Life Insurance Corporation of India Pre-IPO - Peer Comparison, Quick Thoughts on Rumored Valuations

Specialist in Indian Banking and Economic Research

Hemindra Hazari

<ul>
<li>This analyst has historically highlighted many cases of mis-selling by the <a href="https://www.smartkarma.com/entities/icici-prudential-life-insurance" target="_blank" data-smartkarma-citation="entities:23608:1" rel="noopener">ICICI Prudential Life Insurance (IPRU IN)</a> and the company has responded by focusing on its improving persistency ratio</li>
<li>However disclosures reveal that the company has the highest mis-selling, total complaints (per 10,000 policies) and surrender ratio as compared to  the top 6 life insurance companies</li>
<li>IRDAI and IPru Life’s board of directors remains unconcerned about the company’s status as a leader in mis-selling and in surrender ratios. Shareholders need not share this apathy.</li>
</ul>


This analyst has historically highlighted many cases of mis-selling by the ICICI Prudential Life Insurance (IPRU IN) and the company has responded by focusing on its improving persistency ratio
However disclosures reveal that the company has the highest mis-selling, total complaints (per 10,000 policies) and surrender ratio as compared to  the top 6 life insurance companies
IRDAI and IPru Life’s board of directors remains unconcerned about the company’s status as a leader in mis-selling and in surrender ratios. Shareholders need not share this apathy.


ICICI Prudential Life Insurance - Leader in Mis-Selling Life Insurance

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>This is at a time a shocker and at a time, not. Because of rising regulatory requirements for NBFCs, this was to be expected at some point.</li>
<li>The deal pays Limited shareholders a slight premium vs previous close, but enables them to exit without a holdco discount. </li>
<li>Early days yet regulatorily speaking, but accretive, and it makes a lot of sense. It will be appreciated. </li>
</ul>


This is at a time a shocker and at a time, not. Because of rising regulatory requirements for NBFCs, this was to be expected at some point.
The deal pays Limited shareholders a slight premium vs previous close, but enables them to exit without a holdco discount. 
Early days yet regulatorily speaking, but accretive, and it makes a lot of sense. It will be appreciated. 


Shocker! HDFC Bank To Merge With HDFC Limited

<ul>
<li>Life insurance penetration (life insurance premium/GDP) stagnating in India for last decade</li>
<li>Entry of 23 private sector life insurance companies has not increased life penetration</li>
<li>The private players have got the more profitable end of the market, leaving LIC with the lower end. LIC itself, which once expanded the market, has lost direction.</li>
</ul>


Life insurance penetration (life insurance premium/GDP) stagnating in India for last decade
Entry of 23 private sector life insurance companies has not increased life penetration
The private players have got the more profitable end of the market, leaving LIC with the lower end. LIC itself, which once expanded the market, has lost direction.


LIC's Share of a Stagnating Market Declines - Promised Growth of Insurance Penetration a Mirage?

<ul>
<li>Amongst numerous cases of mis-selling of ICICI Prudential Life ULIP policies we highlight 2 cases of N Yadav and Ramvati Yadav in Raigarh district of Chhattisgarh by ICICI Bank staff </li>
<li>Fraudulent documentation by ICICI Bank staff which could have been easily exposed has instead been approved by ICICI Prudential Life's underwriting</li>
<li>Although highlighted only 2 cases there may be many more hidden cases which should be a major concern for investors in  ICICI Prudential Life on the abysmal state of underwriting.</li>
</ul>


Amongst numerous cases of mis-selling of ICICI Prudential Life ULIP policies we highlight 2 cases of N Yadav and Ramvati Yadav in Raigarh district of Chhattisgarh by ICICI Bank staff 
Fraudulent documentation by ICICI Bank staff which could have been easily exposed has instead been approved by ICICI Prudential Life's underwriting
Although highlighted only 2 cases there may be many more hidden cases which should be a major concern for investors in  ICICI Prudential Life on the abysmal state of underwriting.


ICICI Prudential Life’s Underwriting Goes to Sleep as ULIPs Frauds Continue

India

ICICI Prudential Life Insurance Company Limited of India provides life insurance services. The Company offers claim processing, electronic insurance accounts, and other services. ICICI Prudential Life Insurance conducts its business in India.

ICICI Prudential Life Insurance (IPRU IN)

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ICICI Prudential Life Insurance (IPRU IN)

Life Insurance Corporation of India Pre-IPO - Peer Comparison, Quick Thoughts on Rumored Valuations

Government of India is now said to be looking to raise around US$6-7bn via selling a stake in LIC in its upcoming India IPO. In this deal, we talk...

Sumeet Singh

ICICI Prudential Life Insurance - Leader in Mis-Selling Life Insurance

As long as IPru Life focuses primarily on selling new policies, it may continue to be the leader in mis-selling, general complaints and surrender...

Hemindra Hazari

Shocker! HDFC Bank To Merge With HDFC Limited

HDFC Limited and HDFC Bank announced a surprise" Scheme of Amalgamation this morning. It offers a slight premium, and lots of synergies, but most...

Travis Lundy

ICICI Prudential Life’s Underwriting Goes to Sleep as ULIPs Frauds Continue

These cases have highlighted a huge concern regarding the integrity of ICICI Bank officials and the unprofessionalism and even complicity of ICICI...

Hemindra Hazari

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Life Insurance Corporation of India Pre-IPO - Peer Comparison, Quick Thoughts on Rumored Valuations

Government of India is now said to be looking to raise around US$6-7bn via selling a stake in LIC in its upcoming India IPO. In this deal, we talk...

Sumeet Singh

ICICI Prudential Life Insurance - Leader in Mis-Selling Life Insurance

As long as IPru Life focuses primarily on selling new policies, it may continue to be the leader in mis-selling, general complaints and surrender...

Hemindra Hazari

Shocker! HDFC Bank To Merge With HDFC Limited

HDFC Limited and HDFC Bank announced a surprise" Scheme of Amalgamation this morning. It offers a slight premium, and lots of synergies, but most...

Travis Lundy

LIC's Share of a Stagnating Market Declines - Promised Growth of Insurance Penetration a Mirage?

The life insurance market has not expanded, and the business strategies of the private sector appear to be only to eat into LIC’s market share...

Hemindra Hazari

ICICI Prudential Life’s Underwriting Goes to Sleep as ULIPs Frauds Continue

These cases have highlighted a huge concern regarding the integrity of ICICI Bank officials and the unprofessionalism and even complicity of ICICI...

Hemindra Hazari