Source: MedIndia
Life Insurance Corporation (LIC) plans to invest Rs. 45,000 crore of its total investment kitty of Rs. 2.15 lakh crore in the stock markets this year. LIC has already invested Rs. 5000 crore since April.
DK Mehrotra, acting chairman of India’s biggest insurance company says, “Existing regulations stipulate that 50% of the funds have to be deployed in government securities. That apart, we will invest around Rs. 45,000 crore in equities, slightly more than the Rs. 43,000 crore that we had put in last year.” Mehrotra says LIC booked a profit of close to Rs. 17,000 crore during 2010-11 by selling stocks. The corporation, which invested around Rs. 1,83,000 crore in 2010-11 in other securities earned income to the tune of Rs. 90,000 crore. “We believe the market, after experiencing some volatility, could be stabilising and despite high inflation and rising interest rates, we could add to our portfolio if there is an opportunity,” he observes.
Mehrotra says premium incomes have been picking up in the last two months. LIC currently has just under a 70% share of the life insurance premium market with private sector players together accounting for the rest. LIC will focus on traditional products that provide assured returns to the policy holders and also commission to the agents.
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