LIC has earned a total premium income of R1.45 lakh crore for nine months ended December 2016, as against R1.29 lakh crore during the previous year.
Life Insurance Corporation of India (LIC) has earned a total premium income (both first-year premium and renewal premium) of R1.45 lakh crore for nine months ended December 2016, as against R1.29 lakh crore during the previous year. The country’s largest life insurer posted a growth of 12.81% in total assets to R24.41 lakh crore at the end of December 2016. At the end of October 2016, the state-owned life insurer had a market share of nearly 77%.
LIC chairman V K Sharma said the industry was expected to grow in double digits. “We have outperformed the industry in the past and our focus is to continue to grow higher than the industry,” Sharma said.
The corporation’s gross total income grew 15.76% to R3. 37 lakh crore in the nine months to December, 2016, from R2.91 lakh crore in the corresponding period of the previous year. Despite the equity markets going up in the current financial year, LIC invested R39,705 crore in the nine months ended December of this financial year compared to R64,000 crore invested in same period last year. In terms of debt investments, in the nine months ended December 2016, LIC has invested R1.98 lakh crore in debt, of which R1.83 lakh crore went into government securities and state development loans.
“This year in equity investments we are subdued and this was a deliberate decision as markets have gone up very high. We are a contrarian player in the market and our primary goal is to invest for long term and not play trader in the market,” added Sharma.
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According to the senior officials, LIC booked profits of R16,000 crore in the nine months period of FY 17 compared with R9,500 crore in FY 16. Currently, LIC has equity investments of R4.8 lakh crore while in debt its 17.35 lakh crore. Between April and December, total adjusted premium for the industry grew 21% y-o-y to R39,358 crore. The premium for private players grew faster at 23% to R18,723.5 crore while for LIC, the growth was 19% y-o-y to R20,634.7crore.
In the current financial year, LIC has added more than 44,000 agents to the rolls. On the occasion of the diamond jubilee, LIC launched a special plan, ‘Bima Diamond’. The corporation has sold over 5,86,000 policies under the plan collecting over R322-crore premium. Initially during the demonetisation period, LIC had seen a sharp fall in premium collections, but the situation improved after 40 days of the announcement of demonetisation on November 8, 2016.