Country?s largest life insurer?s, Life Insurance Corporation (LIC), which plans to invest around Rs 2 lakh crore this fiscal, valuation surplus has increased by 11% to Rs 23,478 crore during 2009-10 in comparison with Rs 21,152 crore in the previous fiscal.
The corporation doesn?t have a concept of profit and its annual net income is termed as valuation surplus which is shared between the centre and customers of LIC in 5:95 ratio.
In 2009-10 LIC paid Rs 1,029 crore as dividend to the government. Total premium income of the the life insurance behemoth rose by 18.32% to Rs 1,85,986 crore during the period under observation, when compared to the mark of Rs 1,57,186 crore which was achieved by it a year ago.
TS Vijayan, chairman, LIC, said, ?We are looking at achieving the total premium income of Rs 2,01,000 crore by the end of the current fiscal?. Vijayan said that the corporation planned to invest Rs 2,00,000 crore during the current fiscal across asset classes as against Rs 1,92,000 crore invested in last fiscal.
For the reporting period, the share of Unit Linked Insurance Plans (Ulip) was 75% and the total sum of Rs 61,000 crore was invested by it in equities during the entire fiscal. If the markets are good, people invest in Ulip and if the interest rates are good, their preference turn to non-linked traditional policies, said Vijayan.
Investment income grew by 18.76% to Rs 67,197.89 crore during the period.
The company settled a total of 6,64,619 death claims amounting to Rs 7,033.68 crore and 2,05,17,870 maturity/survival benefit claims amounting to Rs 46,921.22 crore during the period. The overall expense ratio during the year was 13.10% from 12.9% a year ago, whereas total assets of the corporation rose by 31.88% to Rs 11,52,057 crore during the reporting period.