LIC wants to open S'pore arm, to apply for licence

Saturday 08, October, 2011 State-run Life Insurance Corporation of India (LIC) will seek licence from the Singapore government to set up a subsidiary to sell policies. In 2009, LIC had sought the approval from the Singapore government to set up office which was turned down as the insurer did not have a rating in place. The corporation has got the rating done from the international credit rating agency Moody's Investors Service. Rating agency S&P has assigned BBB- long-term and A-3 short-term. Moody's has upgraded the government's sovereign rating BA1 for the financial year ended March 31, 2011. The rating, which looks at a country's financial and political climate, suggests its ability to repay loans. LIC's rating, like any public sector unit, is based on standard parameters. The entity is unique in terms of functioning with nominal capital. Its paid-up capital is only 5 crore and it had been assigned the sovereign credit rating on India.

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