Page 36 - Life Insurance Today April 2018

Life Insurance

News
News
News
Corporation NewsNews

LIC books Rs.200bn in LIC a big Investor in many companies involved in Bank-
profits on equity invest- ruptcy Process
LIC has been an big investor in many companies which are in the list of appli-
ments
cations admitted by National Company Law Tribunal
Life Insurance Corporation of India (NCLT) under the Insolvency and Bankruptcy Code,
(LIC) booked a profit of 200 billion 2016 (IBC). The list includes Alok Industries, ABG Ship-
on its equity investments in the cur- yard, Amtek Auto, Mandhana Industries, Jaypee
rent financial year. Net investments Infratech, Jyoti Structures, Rainbow Papers and Orchid
up to December 31 stood at Rs.3.05 Pharma. Stocks of most of these companies have seen
trillion, of which, equity investments more than 95% value erosions from their peaks thereby denting the overall
account for Rs.700 billion. performance of the insurance provider.
Commenting on the company's investments, Hemant Bhargava, managing di-
LIC equity holding crosses rector, LIC of India, said: "In the last three years, we have taken a conscious
6 lakh crore decision of investing only in the BSE200 companies. But you should know that
With the rising equity market, the LIC is an old institution and there are legacy investments about which there is
nothing much we can do."
market value of LIC portfolio across
all NSE listed companies (where its
holding is more than 1 per cent), LIC posts 11.47% jump in premium income to Rs. 2.23L cr
stood at an all time high of Rs 6.26 Life Insurance Corporation of India has reported an 11.47 per cent rise in pre-
lakh crore at the end of December mium income at Rs 2,23,854 crore for nine months ended December 2017 as
2017, witnessing an increase of 14.65 against Rs 2,00,818 crore a year ago. New business performance by the cor-
poration for nine months ended December 2017 has shown an impressive
per cent over that in the previous
growth of 19.47 per cent with its first year premium netting Rs 99,783.33 crore.
quarter. The portfolio value grew 34
per cent over December 2016 when The Corporation has already achieved its single premium target for the FY 2017-
it stood at Rs 465,194 crore. 2018 as on December 31, 2017," LIC Chairman VK Sharma said.
However, LIC's non-performing assets (NPAs) also rose to Rs 23,127 crore from
Data sourced from Prime Database
Rs 19,999 crore previously. The corporation's gross total income grew to Rs
shows that even as LIC's portfolio
378,599 crore for the period ended December 2017 from Rs 337,466 crore in
value grew significantly, its overall
the same period a year ago, showing a handsome growth of over 12.19 per
ownership in NSE listed companies cent. "Total assets of the Corporation stood at Rs 28,51,190 crore as compared
has come down over the last one-
to Rs 24,41,946 crore for the corresponding period last year thus posting a
year from 4.54 per cent in December
growth of over 16.75 per cent," Sharma said.
2016 to 4.24 per cent in December
2017. This is lowest in 11-quarters as On pensions and group superannuation businesses, he said the company has
the previous low was in March 2015 collected Rs 62,385 crore as new premium income against Rs 51,004 crore a
year ago, showing a growth of 22 per cent. This vertical has covered 5.96 crore
when its ownership across NSE listed lives under the social security schemes, he said. Total policy payouts increased
companies stood at 4.23 per cent.
8.73 per cent to Rs 1,21,986 crore for the period.
36 April 2018 Life Insurance Today