"We expect post-IPO improvements in LIC's operating performance and profitability to drive comparable changes across the wider life insurance sector."This is because as India's dominant life insurer, LIC often sets the trend for pricing and policy terms.India's privately owned insurers have already been preparing for the prospect of future profitable growth opportunities, as premium growth continues alongside the government reforms of state-owned insurers."In FY 2020, four of the 24 life insurers raised capital, and we expect more such transactions, as well as more M&A deals and IPOs. These will improve the Indian insurance sector's capital adequacy and financial flexibility in the months ahead."
It also expects foreign insurers to continue investing in India's private insurers where the 49 per cent foreign direct investment limit is much higher than the 20 per cent allowed in LIC.Many global companies already present in India through joint ventures may increase their ownership stakes in their local affiliates, it added.
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