Sunday, June 28, 2009

LIC to invest Rs 1,75,000cr

Life Insurance Corporation (LIC) on Wednesday said it would invest Rs 1,75,000 crore, including Rs 50,000 crore in the equity market, during the current fiscal.

"We are planning to invest a total of Rs 1,75,000 crore against Rs 1,62,000 crore last year," the LIC managing director, Mr Thomas Mathew T., told reporters on the sideline of the LIC roundtable here.

Of the total, Rs 50,000 crore would be invested in the equities and similar amo-unt would go towards the corporate debt, he said. The largest player with a market share of 61 per cent in the life insurance sector has pumped in Rs 8,000 crore in equity markets so far in this fiscal.

On the debt side, he said, the investment was in the the range of Rs 6,000 crore to Rs 7,000 crore in the past two and a half months of the fiscal.

The company had invested Rs 40,800 crore in equities and Rs 40,000 crore in debt instruments in 2008-09. The insurer plans to invest about Rs 65,000 crore into government securities, Mr Mathew said, adding that the remaining Rs 10,000 crore would go towards term loans, mutual funds and venture capital.

Asked about the investment preference, he said, "This year particularly with the government focus on infrastructure, infrastructure-related sectors should be doing well."

On the new premium collection, he said that LIC expects a growth of 35 per cent this fiscal.

In 2008-09, the company earned new premium of Rs 52,000 crore, 10 per cent lower than the previous fiscal.

"New premium plus first year renewal plus group business would all add up to Rs 70,000 crore," he said. — PTI

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