Life Insurance Corporation of India (LIC), India’s largest financial entity with assets of Rs 27.25 lakh crore, has made a profit of Rs 12,374 crore from the stock market in the first six months of FY18 as compared to Rs 10,643 crore in same period of FY17, showing a 16.3 per cent growth.
The insurer has invested Rs 44,000 crore in the market as on November 30, 2017 and it is likely that investments may touch Rs 50,000 crore by the end of the financial year, Chairman VK Sharma said.
The corporation has an appetite to invest another Rs 10,000 crore to Rs 20,000 crore in government bonds this financial year, it said. LIC will not be aggressive in the equity investments since they are a contrarian player in the market, Sharma said.
In FY17, LIC had invested Rs 47,000 crore in the equity market. Their outstanding equity investments stood at Rs 5.71 lakh crore for the first half of FY18 compared to Rs 4.96 lakh crore in the same period last year.
“There was a large government disinvestment programme and we have contributed substantially. We are now almost holding 8 per cent each in GIC Re and New India Assurance (NIA). We didn’t invest in these companies to sell them in three months. These are some of the best public sector companies, much better than public sector banks in the country, We want long dated securities… we are talking to the government and the Reserve Bank of India (RBI),” he said.
“We would like to announce higher bonus this year and our income from equity will facilitate that,” he said.
On the government securities side, LIC has an outstanding investment of Rs 16.15 lakh crore for H1 of FY18 as compared to Rs 13.69 crore in the same period last year.
The corporation at September end 2017 collected over Rs 148,037 crore of total premium income as compared to Rs 132,257 crore collected during the same period last year, showing a very robust growth of 11.95 per cent. The corporation’s gross total income grew from Rs 222,350 crore to Rs 250,267 crore, showing a handsome growth of over 12.56 per cent.
The life insurer has set a target of Rs 38,000 crore as individual first premium income for FY18 and has already collected Rs 27,694.45 crore.
Total assets of the corporation stood at Rs 27,25,808 crore as compared to Rs 23,90,056 crore in the corresponding period last year, thus posting a growth of over 14.04 per cent. Total policy payouts amounted to Rs 76,126 crore for the period ended September 2017 as compared to Rs 73,546 crore for the corresponding period of last year, showing an increase of 3.51 per cent. This includes a payout of Rs 35,482.07 crore for claims outgo covering 79,74,383 claimants for the half year ended September 2017 as compared to Rs 35,643.75 crore and 73,22,250 claimants in the same period of previous year.
New business performance by the corporation for six months ended September 2017 has shown an impressive growth of 23.68 per cent in its first year premium by posting a figure of Rs 68,224.29 crore.