The state owned Life Insurance Corporation (LIC ) has earned a total income of Rs 1,92, 763 crore as on December 10. The total income includes the corporation’s investment income, dividends and interest on various corporate loans.

In 2009-10, LIC had recorded a total income of Rs 2,98,721 crore. The corporation’s premium is pegged at Rs 1,29,552 crore till December 2010 as against Rs 1,85,985 crore in 2009-10.

It has sold 1,27, 12, 496 policies for a sum assured of Rs 2,82, 227 crore . The corporation has paid death claims to the tune of Rs 5315 crore till December 2010. Its maturity claims were at Rs 28,851 crore till December 2010.

The corporation has invested around Rs 14,000 crore in NCDs during the current fiscal so far. LIC’s total NPA is at around 0.19% which is falling year after year as the corporation wants to bring it down by 4-5 basis points by the fiscal-end.

LIC’s average yield has been in the range of 9.5% to 10% this year. The corporation is planning to invest Rs 40,000 crore on net basis in the equity market. LIC has also invested a small amount in PSU IPOs.

The corporation from its equity portfolio had made a profit of Rs 13,000 crore till December 3, 2010 as against a profit of Rs 9,400 crore in whole of the last year.

Most of the investments made by the LIC are in top 200 BSE stocks alone. Going forward, the corporation will more be focusing on secondary markets and very selectively on the primary markets too.

LIC’s total exposure in corporate loans, NCDs and bonds is pegged around Rs 2.5 lakh crore.

Currently, the corporate investment has slowed down as many of the corporates are not borrowing as of now. LIC normally goes for rated papers and project finance only, when it comes to corporate investment.

This year, LIC has given a sum of Rs 500-600 crore in the corporate investment. But its total sanction is more than Rs 2,500 crore. Nearly 90% of the investments are in power projects.
Source : Financial Express