The Hindu Business Line : Overseas operations plans — LIC in pact to set up joint venture in Saudi Arabia

While the exact pattern of shareholding is yet to be worked out, LIC will have the majority stake in the new company, according to Mr T.S. Vijayan, Managing Director.

He told newspersons that the corporation had firmed up plans to launch a joint venture company in Dubai as well. Since the procedure was much easier there, the company is expected to be in place within the next six months, he added.

LIC Offshore Ltd, based in Mauritius, will be the holding company for the corporation's operations in the African countries.

While it has set up a company in Kenya, plans are afoot to start similar ventures in Madagascar and Tanzania, Mr Vijayan said.

He added that LIC was eyeing "strategic" stakes in the banking sector. It currently holds 27 per cent stake in Corporation Bank and 14 per cent in UTI Bank. The idea is to have a role in the banks' boardrooms, which will help LIC actively participate in the emerging bancassurance business.

About the corporation's performance, he said that despite stiff competition from 13 international life insurance companies, LIC still commands 90 per cent of the marketshare in the number of policies issued and 79 per cent in premium income.

As on January 31, 2005 the corporation had sold 14.61 million individual policies collecting a premium of Rs 6,357.50 crore. The premium growth rate worked out to 34.51 per cent. In the group insurance sector, LIC covered 2.49 million new lives for a premium of Rs 2,082. 50 crore.

The total investments of LIC as on March 31, 2004 stood at Rs 3,47,764 crore. It invested Rs 38,284 crore in the social infrastructure sector alone in 2003-04, Mr Vijayan said.

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