LIC premium income rises 12% to Rs1.48 trillion in Apr-Sep period
Mumbai: Total premium income at Life Insurance Corp. of India (LIC) rose nearly 12% in the six months ended September to Rs1.48 trillion, the state-run insurer said on Tuesday.
Total net income during the period rose 12.6% to Rs2.50 trillion.
LIC, India’s largest institutional investor, booked Rs12,374 crore profit from the sale of equities during the period, up 16.3% from a year before, as the market scaled record highs.
Benchmark equity index Sensex had rallied 5.62% in the first half of the current fiscal year, and had tested record highs in the period.
Since 30 September, Sensex has advanced a further 4.85%.
India’s largest life insurance company did not plan to aggressively buy equities during the rest of the financial year, but did plan to book profits to generate income, chairman V.K. Sharma said. “We will keep on doing routine sale and purchase. We will not be aggressively buying,” Sharma said.
LIC is the largest investor in the Indian markets with a balance sheet size of Rs27.3 trillion, which has grown 14% from a year earlier. The state-owned life insurance firm purchased equities worth Rs39,224 crore in the first half of 2017-18, compared to Rs17,974 crore a year earlier.
“This year, the government’s disinvestment programme has kicked off in the beginning. We are long-term major players,” Sharma said, pointing out that LIC had bought 8.42% and 8.67% stakes, respectively, in state-owned firms General Insurance Corp. of India Ltd (GIC Re) and New India Assurance Co. Ltd during their recent initial public offerings.
“Wherever we find in the long term it is beneficial to policy holders, beneficial to country, beneficial to us, we go there,” he added.