Life Insurance Corporation of India (LIC) has booked profits of more than Rs 6,100 crore from the equity markets in three months to June 2017, compared with Rs 2,489 crore in same period last year.
Life Insurance Corporation of India (LIC) has booked profits of more than Rs 6,100 crore from the equity markets in three months to June 2017, compared with Rs 2,489 crore in same period last year. Senior LIC officials said the insurer would invest around Rs 45,000-50,000 crore in equities in this financial year. Chairman VK Sharma said, “In the current financial year, we have invested around Rs 16,000 crore in equities.” In the last financial year, LIC had invested over Rs 43,800 crore in equities and 2.62 lakh crore in G-Secs.
Sharma was speaking to reporters on steps taken by LIC to ease difficulties of the people affected by floods in Gujarat and Assam. Simplification of formalities for accident benefits and claim investigation waive-off irrespective of the duration of the policy are among the measures. He said in the last fiscal, LIC had gross non-performing assets (NPAs) of around Rs 17,000 crore, of which Rs 13,000 crore was from joint lending business. LIC has made 100% provision for all the NPAs.
LIC is also looking to collect premiums of Rs 38,000 crore from new business on a individual basis for 2017-18. LIC in the last financial year had seen new business premiums at Rs 1.24 lakh crore with significant growth in group single premium policies, data from the Insurance Regulatory and Development Authority of India (Irdai) showed.
In regard with the various initial public offerings lined up by various insurance companies, LIC is keen on investing in GIC Re. “In the IPO of GIC Re, we will participate, while for rest of companies I might not able to say as the proposal will first go to the investment committee and they will take the view on that issue.”