The Hindu Business Line : Life Insurance Corpn to ramp up equity exposure

Kolkata, June 24 Life Insurance Corporation is to ramp up its equity exposure this year in a falling market scenario, Mr S.S. Dash, Zonal Head of LIC, said here on Tuesday. The corporation’s income from sale of equity in 2007-08 was Rs 10,000 crore, he said.

Speaking at the launch of its unit-linked endowment policy Market Plus-1, Mr Dash said, “LIC is inherently a long-time investor and we would utilise the opportunity in a falling market to park our assets in equity at cheaper rates, while sticking to IRDA guidelines.” Incidentally, LIC had recently increased its stake in Reliance Industries, HDFC Bank, ITC and Tata Steel.

Investment at market price by LIC has also been rising, Mr Dash said, pointing out that it had grown to Rs 7,51,000 crore at the prevailing market price in 2007-08, compared with Rs 6,70,000 crore in the previous fiscal. Gross investment, he pointed out, was Rs 1,50,303 crore in 2007-08. LIC’s total income from investment stood at Rs 40,655 crore over the same period, he said.

LIC has also been increasing its investment in infrastructure, Mr Dash said. Last year, cumulative investment in infrastructure was Rs 56,691 crore.

Cumulative investment in the social sector for mass housing, water supply and drainage stood at Rs 32,321 crore.

The loan forwarded to the West Bengal Government last year was Rs 1,583.26 crore, the second highest in the country after Maharashtra, he added.

The corporation has set a target of increasing first premium income in the eastern zone by 50 per cent this fiscal from Rs 4,102 crore in 2007-08, Mr Dash said, adding that it is also looking at a growth target of 22-23 per cent in renewal premiums. Last year, renewal premiums comprised 21.65 per cent of its total premium income.

The corporation also plans to increase sale of policies such as Jeeven Tarang and Jeevan Anand this year. It plans to raise its business from non-single premium policies up to 55 per cent. Currently, 40 per cent of LIC’s total business comes from non-single policies, while the rest is contributed by single premium policies.

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