Life Insurance Corporation of India (LIC) is looking at 25% growth in new premium income in FY10, after it registered a growth of 69.33% in the first premium collection in April 2009. The insurer is also planning to invest Rs 40,000 crore in equities in 2009-10. The country?s largest insurer had collected Rs 52,000 crore from new premium income in 2008-09.
?We are targeting a growth of 25% in the first premium income and 20% growth in total premium income. It will come from the mix of traditional and unit linked plans,? said TS Vijayan, chairman, LIC, at an interactive session organised by Ficci here on Tuesday.
Last year, LIC collected Rs 1,55,000 crore of total premium, while new premium income went down by 10%. Sales of life insurance companies fell by 6.32% in 2008-09, after investors became jittery about unit-linked plans.
But first premium income of the insurer, according to Insurance Regulatory and Development Authority (Irda) statistics, jumped by 69.33% during April 2009, as it touched Rs 2,113.11 crore against Rs 1,247.89 crore in 2008.
According to industry estimates, LIC is likely to collect Rs 5,354.92 crore as first premium during April-May 2009. The insurer is estimated to grow by 28.39% over the corresponding period last fiscal, garnering a market share of 61.88% for the first two months of 2009-10.
Meanwhile, the insurer has planned to invest Rs 40,000 crore in equities in 2009-10. ?If the going is good our investments will be similar this year (to that of last year),? Vijayan said. LIC had invested Rs 40,000 crore in equity in 2008-09. Its investment in stock markets every year is around 8-9% of its total premium collection.