LIC's total assets cross Rs 27 lakh crore in 1HFY18
"The company will meet or exceed its FY18 target for premium and profit from equities," said VK Sharma, Chairman of LIC of India.
Life Insurance of India (LIC) on Tuesday presented its financial audit report for the first six months of fiscal year 2018 (1HFY1), under which the country's largest policy holder's total assets crossed over Rs 27.25 lakh crore.
The premium income of LIC for April -September 2017 period stood at Rs 1.48 lakh crore, higher by 12.12% from Rs 1.32 lakh crore recorded in the corresponding period of the previous year. The new business premium, however, grew by 23.7% to Rs 68,220 crore in the current period.
VK Sharma, Chairman of LIC of India, said, "The company will meet or exceed its FY18 target for premium and profit from equities."
Sharma said the company's investment in equities came in at Rs 5.71 lakh crore in 1HFY18, compared to Rs 4.96 lakh crore.
However, 1HFY18 saw trading profit from sale of equities at Rs 12,370 crore, witnessing a growth of 16% year-on-year (YoY) basis.
Speaking about the market situation, Sharma highlighted LIC's further investment plan and said, "There has been some slowdown in corporate bonds and term loans. The company would like to purchase more government securities in second half of FY18. However, it will not buy equities aggressively for rest of FY18, as the market is at peak."
"LIC of India has an appetite of Rs 10,000 to Rs 20,000 crore in government bonds for next four months. As for equities, the company will continue to book profits in the entire fiscal," Sharma added.
Moreover, LIC has given Rs 16,000 crore to IRFC out of total Rs 1.5 lakh crore committed, said Sharma, adding "LIC need to frame a structure regarding lending to IRFC."
Meanwhile, Sharma also added that LIC will continue to invest in banking system of the country.
Earlier in the month of March 2015, Indian Railways had signed a memorandum of understanding (MoU) with LIC to raise about Rs 1.5 lakh crore for their entity like Indian Railway Finance Corporation (IRFC) over the next five year beginning from April 01,2015.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.