Page 10 - Insurance Times April 2017 Special Issue on Newindia

LIC of India

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LIC grows more in single LIC to hold 15% stake in IIFCL

premiums The government has finally selected India Infrastructure Finance Co Ltd (IIFCL)
as the lead promoter of a credit enhancement guaran-
Life Insurance Corporation of India's tee fund. The propaganda was announced in the Febru-
premium in the ary 2016 Union budget.
first month grew
The credit enhancement fund will be floated by a non-
40% year-on-
banking finance company (NBFC) with IIFLC holding an at
year (y-o-y) for
least 26% stake, these people said, adding Life Insurance Corporation of India,
the nine months
ended December or LIC, which was initially mooted to be the lead promoter, will hold up to a
2016. According 15% stake. An IIFCL spokesperson confirmed that the company has been ap-
to the data of LIC the single premium pointed as the lead promoter, but didn't reveal further details.
policies played an important part in 68% increase in profits from equity for LIC
this growth during the current fiscal.
Life Insurance Corporation of India has sown as impressive 68% jump in profits
The robust sales of LIC's immediate
which amounts to about Rs. 16,000-crore, from eq-
annuity plan - Jeevan Akshay - was
uity sales in the first nine months of the financial
the key reason for the sharp jump in year. "We have booked profits of Rs. 16,000 crore
the company's premium in Novem- in the year so far by selling about Rs. 38,000 crore
ber, according to sources in LIC.
of equity," said V K Sharma Chairman LIC. He also
In January, new business premium added, "We are a contrarian player and we have
growth slipped to 30 per cent over deliberately taken this decision given the way markets have moved." He said
the previous year, with single pre- that equity is only 12% of their investible corpus.
mium growing 40 per cent y-o-y.
LIC invested around Rs. 1.98 lakh crore in debt instruments, including Rs. 1.83
While demonetisation and fall in rates
lakh crore in government services and state development loans.
triggered LIC's November sales, the
company's growth until October was Rs 1.45 trillion growth in April-December period
also driven by single premium policies. The total premium collected at the end of December showed a growth of 12.43%
LIC working on a amounting to Rs 1.45 trillion from Rs1.29 trillion in the
same period a year earlier. Total assets also grew by
makeover 12.81% to Rs 24.42 trillion from Rs 21.65 trillion in the
The Life Insurance Corporation of In- year-ago period.
dia is planning a change that will in- "Our performance is in line with our expectation. The
clude an overhaul of its lending op- corporation has recorded healthy results based on its strong fundamentals and core
erations, stronger corporate gover- values," LIC chairman V.K. Sharma told. Talking about LIC'S expectation from new
nance framework and a more mod- business for the current fiscal, he said, "We hope to achieve Rs 35,000 crore from
ern sales force equipped to receive new business on the individual basis from Rs 31,000 crore which has been achieved
digital payments. by us so far, whereas overall premium target remains unchanged by the fiscal-end."

10 The Insurance Times, April 2017

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