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State-owned LIC has been investing in stock markets in the past few weeks as “there are opportunities” [AP]
“We made an aggregate investment of Rs 2.25 trillion last year. This year it would increase by 10 per cent,” said LIC chairman S K Roy.
Life Insurance Corporation accounts for 83 per cent of the Indian insurance market share.
Roy said market conditions would determine increase in exposure to equity market, secondary or primary.
He pointed out that the state-owned LIC has been investing in stock markets in the past few weeks as “there are opportunities”.
On earnings, LIC expects to achieve a 15 per cent growth in first year premium income in the current financial year as against a contraction in the last fiscal.
LIC has already announced plans to set up 1,700 small offices in towns and villages with population of 10,000 and above by December 2013.
LIC said there would be an expansion drive in promising semi urban TIER II and TIER III Indian cities and rural areas, with 300 new offices already established in smaller cities.
Indian finance minister P Chidambaram had said earlier that insurance firms will be allowed to open branches in Tier II cities and below without prior approval of the Insurance Regulatory and Development Authority (IRDA).
“All towns of India with a population of 10,000 or more will have an office of LIC and an office of at least one public sector general insurance company. I propose to achieve this goal by 31 March 2014,” he said.
According to official data, LIC’s investment income has grown exponentially, from about 322 billion rupees in the fiscal year that ended March 2006 to 777 billion rupees five years later.
Source: Agencies
