Life Insurance Corporation is set to be the nation’s largest share sale by March. It is the strongest and the biggest brand in India with a valuation of USD 8.656 billion (which is around ?64,722 crore). It also makes the company the third strongest insurance brand globally, according to a brand valuation report.
As per the London-based Brand Finance, which is a brand consultancy, the market value of LIC will become ?43.40 lakh crore or USD 59.21 billion by 2022, and ?58.9-lakh crore or USD 78.63 billion by 2027.
LIC’s brand value went up
LIC’s brand value also jumped in overall global brand rankings by 32 places and became the world’s 206th most valuable brand in 2021, from its 238th slot in 2020.
Going by this valuation, LIC is the biggest and strongest brand in India with a valuation of USD 8.655 billion in 2021, which has grown by 6.8% from USD 8.11 billion in 2020, even though the value of top 100 insurers declined by 6% 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.
Notably, the state-owned insurance behemoth gained in brand value by 6.8% last year, all other top 100 insurers actually saw their brand value decline by 6% from USD 462.4 billion in 2020 to USD 433.0 billion in 2021.
Out of the top 10 at least 5 are Chinese insurance companies, with Ping Insurance emerging the world’s most valuable insurance brand, despite having a 26% drop in brand value. The US has two companies in the top 10, while France, Germany, and India have one each in the list.
LIC is the only domestic insurer to rank in the 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 ?37.5 lakh crore in 2021 down 1.2 per cent from ?38.2 lakh crore in 2020.
LIC’s future valuation prediction
The agency has predicted that LIC’s value is going to reach the valuation of ?43.40 lakh crore or USD 59.21 billion by the end of the year 2022, and hit the value of a ?58.9-lakh crore or USD 78.63 billion by the year 2027.
LIC has grown by 151% since the year 2014 at the rate of 14% annually. LIC percentage across all three pillars remains positive between 2020 and 2021 with a notably huge growth of 11% in brand performance measures. After four years of steady decline, the brand strength of LIC went up by nearly 14 points between 2018 and 2021.
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