Ahead of LIC IPO, insurer makes massive returns from equity markets in FY21
Ahead of LIC IPO, some very good news has just been announced. India's largest insurance company and prominent government entity, the Life Insurance Corporation has doubled its profits in equity returns in financial year 2020-21 as compared to the previous financial year 2019-20.
Sources tell Zee Business, "The insurance company has earned over Rs 35000 crore due to profit booking in the equity market in FY21 as compared to Rs 18000 crore in FY20."
LIC invested heavily during downtrend and made exponential profits in the reverse swing through equity market, sources add.
LIC had invested more than Rs 85000 crores, in the whole year, in equity. The company has been making a large part of its investment in the instruments of government security and guaranteed returns, sources say.
In the endowment or money back plan, LIC declares a bonus every year to policy holders. "However, the record earnings of LIC from the equity market will be shared with the policy holders as yearly bonus," sources explain.
In the Budget 2021, Union Finance Minister Nirmala Sitharaman had announced that LIC would be listed on the exchanges and in the current financial year it will have its IPO.
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