Mumbai : Life Insurance Corporation of India (LIC) reported a profit of Rs 6,100 crore in the April- June quarter through sale of equities from Rs 2,489 crore in the year-ago period. The company show a growth of 145 per cent in the first quarter, stated V K Sharma, chairman of LIC.
He further added, “We have invested around Rs 16,000 crore in equities until July-end from Rs 43,800 crore which had been invested by us in equities in the last fiscal.”
Meanwhile, he added that the company, which usually invests around Rs 50,000-40,000 crore in equities, has invested up to Rs 65,000 crore last year, mainly due to investments in Indian Oil and ONGC. The state-owned life insurer is expected to increase their investments in equity by double digit. Commenting about the market-linked policies, Sharma added that there is good demand for it.
Like in the past, LIC’s new business premium has also witnessed growth in the first quarter of the current fiscal. Sharma added that the new business premium saw a growth of more than 10 per cent in the first quarter of the current fiscal. “In the first quarter we have grown roughly by 10-11 per cent and in July also our growth is more on that, so we are on track, in terms of new business premium,” he said. He further added this year LIC launched four policies and all have done well.
Commenting on LIC’s plan to invest in the upcoming IPOs, Sharma said that there is no restrictions in participating in GIC Re’s forthcoming IPO.
In order to invest on IPOs of other insurance companies, Sharma believes things would not be as smooth as GIC Re. For others, LIC will have to take permission of regulator (IRDAI) and investment committee. He added that insurance companies have a long way to go. “Life and general insurance outlook is positive,” he added.
Speaking about NPAs, Sharma said LIC has done 100 per cent provisioning against all the NPAs amounting to Rs 18,000 crore.
LIC will speed up claims of Assam, Gujarat flood victims
LIC announced on Friday that steps are taken to support claims of customers affected by recent floods in Gujarat and Assam. The company has allowed late payment of premiums for a period of six months. V K Sharma, chairman of LIC said, “As a socially responsible corporate citizen, we extend our hand for help in every possible manner.” The company will have its regulations in place yet will waive off the claim investigation irrespective of the duration of the policy.
The company has already paid up a claim of about Rs 13 lakh to one victim named Rajesh Bhai in Gujarat. Sharma added for next two-three months people will be under economic difficulties and LIC wants to help them in best possible way. The company has recognised the flood-affect area with the help of the government, he added. For social benefit scheme such as Pradhan Mantri Jeevan Jyoti Bima Yojana and Pradhan Mantri Jan Dhan Yojana, LIC would work with Indian Banks’ Association and partner banks to speed up claims.
