LIC brought in a whopping First Premium Income of Rs.15,840.67 crore as against the first premium income of Rs.12179 cr during 2003-04 , posting a momentous growth rate of 30 % during the year 2004-05. Out of this, Rs. 12174.11 cr came from the Individual Business, posting an impressive growth rate of 42.1% as against the targeted growth rate of 35 % through the sale of more than 2.39 cr policies during the year 2004-05 , continuing its spree of dominant market leadership in life insurance in India . Rs.3666.56 crore is contributed by the Corporation’s Pension & Group Business during the year 2004-05. March 2005 alone has brought in a historic New Business First Premium Income of Rs.6282.35 cr (Individual Business of Rs.4655.87 cr showing a growth rate of 60.54 % and Pension & Group Business of Rs.1626.48 posting a growth rate of 19 %) .

The major contributors to this phenomenal success in the First Premium are the market preferred unit linked plans of LIC – Bima Plus and Future Plus. During the year, Bima Plus brought in Rs.2183.5 crore First Premium through 7.19 lac policies . LIC has sold more than 10 lac policies of Future Plus , the unit linked pension plan of LIC launched during the month of March- 2005 , bringing in premiums to the tune of Rs. 2107.75 crore (first premium). 35.25 % of the First Premium business of LIC has come from these two plans alone.

The segment of Individual Pension Plans also posted an astronomical growth rate of 462 % in First Premium Income and 337 % in policies . The Single premium plans and Bima Nivesh have also done extremely well, posting a growth rate of 132 %.

In the segment of Pension and Group Business also, LIC has achieved a growth rate of 42 % in the number of lives covered .In spite of the intensifying competition, the market share of LIC’s Pension and Group Business has shown an increasing trend as on 28th Feb, 2005 and is expected to go up further as on 31st March, 2005.The mega schemes finalized during the year were with Corporates of repute like BEML. at Bangalore , Infosys, TCS, Grasim and Ultratech Cements Ltd. In Social Security Schemes also, LIC has achieved a growth rate of 142 % in the number of lives and 48 % on the schemes count respectively . The Raipur Pension and Group Schemes unit has covered 23.89 lac new lives under the existing Tendupatta Pluckers Social Security Scheme.

The Western Zone of LIC has contributed to the maximum amount of First Premium Income and the Eastern Zone has brought in the maximum Number of Policies. LIC ’s Howrah Division contributed to 6.23 lac policies while Delhi – I Division contributed Rs.310.17 cr of First Premium during the year thus showcasing an outstanding performance amongst the 100 divisions of LIC.

LIC’s Total Income (provisional) for the year 2004-05 amounts to Rs.106540 cr (growth rate – 14.45%) and the Total Assets as on March, 2005 stand at Rs.462000 cr(growth rate of 25.76 % ).LIC has settled 1.073 cr of Total Claims during the year 2004-05 (Maturity Claims -1.034 cr and Death Claims -0.039 cr) taking forward the spirit on the servicing front as well. LIC in recent times has made rapid strides towards customer service, leveraging technology to offer quicker and better services to its customer base (more than 16 crore customers).

Mr. R.N.Bhardwaj, Chairman, LIC has expressed his gratitude to all the customers and has extended a warm welcome to the 3 crore odd new customers for reposing confidence in LIC . He said that at LIC, the Customer comes First and is the Focus of the Business.

27th April, 2005

Mumbai.