LIC to cross Rs 40,000-cr target for equity investments this year

As of now, it has made Rs 32,000 crore worth new equity purchases

Life Insurance Corporation of India (LIC), the country’s largest in the segment, expects to cross the target of Rs 40,000 crore for investment in equity this financial year, says Chairman S K Roy.

It has made Rs 32,000 crore worth of new equity purchases till date this year, he told reporters on the sidelines of a Federation of Indian Chambers of Commerce and Industry seminar.

“Investment is not a target. It is an estimate made in the beginning of the year. So far, we have got abundant opportunities to both buy and sell. If there are similar opportunities in the second half of the year, then, in all likelihood, we will cross the target by some margin. From time to time, we also sell equity investment to book profits,” Roy said.

For LIC, public sector banks are a very attractive investment opportunity and, subject to regulatory limits, it will look at opportunities in that sector. “If any offer comes along, like tier capital building, we will look at it,” he added.

Pharmaceuticals, parts of infrastructure and the automobile sectors are other attractive ones for investment. There were also good opportunities in corporate bonds and other debt instruments, he added.

The company collected approximately Rs 15,000 crore of new premium as of October 15 and will achieve its target of Rs 33,000 crore for first premiums in this financial year. “The third quarter will be better than the second quarter,” he said. Till August, LIC's market share in premium collected was 80 per cent and in the number of policies sold it was 85 per cent.

When asked about LIC appointing its own nominees on boards of companies, Roy said they were in the process of getting feedback from firms where it held significant stake.

LIC, which has 12 lakh agents in total, had planned to recruit 2,00,000 agents this year. However, it has hired only 5,000 in the year so far.