LIC market pie rises to 77.5%

Buoyed by a rise of 182.26 per cent in premium income, Life Insurance Corporation of India's market share expanded by 3.5 percentage points to 77.51 per cent at the end of July, from 74 per cent at the end of March.

Speaking on the occasion of LIC's golden jubilee, Chairman T S Vijayan said LIC had largely outperformed the industry growth rate of 177.44 per cent. In fact, the industry growth was mainly because of the largest domestic insurer's growth in the current financial year.

LIC's new premium grew 191 per cent to Rs 10,381.57 crore, on August 15. The group insurance portfolio mopped up new premium worth Rs 1,819.44 crore with a growth rate of 85 per cent. The new premium under the Social Security Schemes stands at Rs 28 crore, with a growth rate of 774 per cent, on the same day.

Vijayan said LIC would be targeting a substantial growth this year. While for the individual segment, in the first year premium, it is in excess of Rs 24,400 crore "� at a growth rate of 40 per cent, the target for the group business is Rs 3,000 crore. LIC has a total investment of Rs 4,65,100 crore.

It has invested Rs 2,39,598 crore or 52.54 per cent in government securities. Rs 59,625 crore has been pumped into infrastructural projects. The investment in equity (book value) is more than Rs 46,000 crore.

The chairman estimated fresh investments to the tune of Rs 1,40,000-1,50,000 crore this year, about half of which (Rs 70,000 crore) would be put into government securities.

Vijayan also announced the launch of a new policy, Bhima Gold 2, on September 4. Bhima Gold 2 would provide for cover even after the maturity date for half the sum assured for an additional period of half the maturity period.

LIC also targets to set up around 100 satellite offices this year, compared with 20 last year.