Mumbai: Despite seeing a 17-18% decline in its policy sales in FY 09, Life Insurance Corporation of India (LIC) hopes to enhance its investments across different portfolios to Rs1.6 lakh crore by March as compared to Rs97,000 crore in FY 08.
The insurer has invested Rs1.02 lakh crore in various segments so far in FY 09 which includes around Rs29,000 crore investments in equities.
“We may invest an additional Rs40,000 crore in equities by end-fiscal,” LIC’s Executive Director,Investment Operations, N. Mohan Raj said.
“LIC has seen a rise in the number of corporates approaching it for debt this year on account of the credit crunch in financial markets,” the official said.
“The corporation has invested Rs23,190 crore in non-convertible debentures (NCD) so far in this fiscal,” Mohan Raj said, adding: “The corporation is likely to invest another Rs20,000 crore in NCDs by March.”
“Similarly, investments in Government securities and project loans as at end-September stood at Rs36,311 crore and Rs1,342 crore respectively and the company is likely to put in another Rs18,000 crore in its G-Sec portfolio by end-fiscal,” the official said.
Despite adverse market conditions, LIC has not seen any rise in its defaults which presently stands at around 0.5%.
“The insurance giant’s market share in terms of new business premium stands at 55% as at October, while the market share in terms of total premium is close to 78%,” the official said.
“The insurer has relaxed the claim settlement norms for Mumbai terror attack victims,” the official said.