1. LIC invests Rs 53k cr in equity during FY16

LIC invests Rs 53k cr in equity during FY16

Life Insurance Corporation of India (LIC) has taken advantage of the volatile market condition and has invested R53,000 crore in the equity markets so far in FY16, compared with R39,000 crore in the previous fiscal.

By: | Published: February 2, 2016 12:32 AM

Life Insurance Corporation of India (LIC) has taken advantage of the volatile market condition and has invested R53,000 crore in the equity markets so far in FY16, compared with R39,000 crore in the previous fiscal.

Speaking to media during the launch of LIC’s e-Services on Monday, SK Roy, chairman of LIC, said: “We don’t have any particular target for investments, it is basically governed by what opportunities are available with us. In the current fiscal, the capital markets have been down, which has given us the opportunity to become net buyer this year. In the last fiscal, when capital markets did very well, we also did equally well in booking profits on equity transactions. Profit booking has been R10,000 crore in the year till now.”

On the debt side, the state-run insurer has invested over R1.5 lakh crore in governments securities in the current financial year.

The ongoing financial year has been tough for the insurance behemoth compared to other private players who have seen better growth. However, with a few new products, LIC plans to end the year on a strong note.

“On the operation point of view, the year has been little challenging for us, but we are seeing green shoots. I say it is because LIC grew faster than competitors in December. The performance further improved in January and we are likely to close last month with near double-digit growth rate. I am sure we would continue to take the same positive growth even in the last two months of current fiscal.”

The e-services launched by LIC on Monday will offer repository services as per the revised guidelines from the Insurance and Regulatory Development Authority of India (Irdai) on the same. Basic services as mandated by Irdai such as policy status, bonus status, loan status, claims status, etc will be available to customers registered with LIC’s e-Services.

Premier services such as premium due calendar, online premium payment facilitation, premium history, claim history, etc will also be available to registered customers. LIC has sold over 10,000 policies of its unit-linked insurance plans which were launched in August 2015, and 6,000 policies under its online e-term plan.

In 2015, Indian Railways signed a memorandum of understanding with LIC to raise R1.5 lakh crore over the next five years, beginning April 2015. Roy said, “We have disbursed R2,000 crore in terms of this MoU and hopefully there could be another tranche in the current financial year.”

  1. No Comments.

Go to Top