Page 38 - Life Insurance Today OCTOBER 2017

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LIC asked to review re- LIC's stock portfolio outperforms the benchmark index

turn on Jeevan Akshay The stock portfolio of LIC has outperformed the benchmark index in last 3 years
as well as in the current calendar year by a
The Insurance Regulatory and De-
wide margin. An index of LIC's top 100 stock
velopment
holdings has given an 89% return on an abso-
Authority of
lute basis since September 1, 2014 against
India (IRDAI)
Sensex's absolute returns of 68 % and BSE-
has asked 100's absolute returns of 87 %.
the Life In-
surance Cor- "LIC is one the savviest and genuine contra in-
poration (LIC) to review the return stitutional investor in India as their policies
on its flagship Jeevan Akshay pen- which run for decades allows them to invest
sion plan which provides regular in- for very allows them to invest for very longer period," said Jay Bodke, CEO,
come against upfront premium. The Prabhudas Lilladher. "They buy quality stocks when there is a panic in the mar-
directive aims to ensure that returns ket and sell those shares in the peaks."
are in line with yield on LIC's invest- Currently, LIC holds stakes in nearly 375 listed companies worth Rs 5.14 lakh
ments. crores. LIC's top midcap bets like Bajaj Finserv, HPCL, Britannia, Ashok Leyland,

Anand Jathan, one of the top agents Bharat Electronics, Piramal Enterprises have gained over 400 % in the past 3
at LIC, said, "While there are invest- years.
ments like the Pradhan Mantri Vaya
However, most of LIC's investments in the PSU stocks have been disappoint-
Vandana Yojana (PMVVY), which pro-
ments. In FY16, LIC had booked profits in stocks worth Rs 11,000 crores. Thanks
vide a return of 8%, these are only for to higher profit from its huge portfolio, LIC has decided to pay 40 % higher
a period of 10 years. Jeevan Akshay
bonus and dividends to the government and its customers for 2016-17.
pension is guaranteed for life with a
widow pension option." He added LIC reduces stake in Raymond by 2%
that the return of capital made this
equivalent to a fixed deposit. Life Insurance Corporation (LIC) has reduced its stake in textile and apparel
major Raymond by 2.01%, selling 12.37 lakh shares
According to Jathan, investors selling
in the open market.
real estate also choose to park their
funds in LIC's guaranteed return Raymond promoters Vijaypat Singhania and his son
scheme. LIC is encouraging sales of Gautam are involved in a property dispute over pos-
the Jeevan Akshay plan as it signifi- session of a duplex flat in the multi-storied JK House
cantly increases its top line and building in south Mumbai.
bumps up its market share. Agents However, shareholders of the textile major rejected
who bring in large policies are being overwhelmingly the proposal for sale of JK House to
rewarded and recognized. its promoters and extended family at a substantial discount.

38 October 2017 Life Insurance Today

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