Chairman, LIC of India, VK Sharma presented a cheque of Rs 2,430.19 crore to Union Finance Minister, Arun Jaitley, as the Government of India’s share of the surplus arising out of the LIC’s actuarial valuation as on March 31, 2018.
During the fiscal 2017-18, LIC generated a total valuation surplus of Rs 48,444.82 crore, registering a growth of 10.1% over the previous year. After distributing 95% of the surplus to policyholders as bonuses, the balance of 5% amounting to Rs 2,430.19 crore is the share of the Government.
P Radhakrishnan, Minister of State for Finance and Shipping, Girish Chandra Murmu, Special Secretary, Department of Revenue, Debasish Panda, Additional Secretary, DFS were present along with officials from Life Insurance Corporation of India, Hemant Bhargava, MD, B Venugopal, MD and Sunita Sharma, MD.
LIC manages assets worth more than Rs 28.45 lakh crore. LIC had annual income of Rs 5.23 lakh crore and achieved the highest ever first year premium income of Rs 1,34,551.68 crore in the year 2017-2018.
It had a market share of 75.67% in number of policies as on March 31, 2018. During the year 2017-18 LIC has settled claims to over 2.66 cr claimants for an amount of Rs 1.11 lakh crore.
During 2017-18, the corporation has invested Rs 2.62 lac crores in Central and State Government Securities with an average annualised yield of 7.63 per cent. An investment of Rs 37,824 crore was made in corporate bonds at a yield of 7.80 per cent and an investment of Rs 88980 crore was made in equities .It had realised a profit of Rs 25,646.62 by sale of equity and has generated an investible surplus of Rs 3,68.660 crores.
LIC had ended FY 2017-18 with a total premium, including renewals, close to Rs 3,17,000 crores. The total investment income of the corporation stands at Rs 1,97,000 crore.
The investment department continues to strive to deliver better returns on the portfolio with safety first objective. However one area of concern for the corporation is that while the total benefits paid out grew by nearly 18 per cent to about Rs 1,97,600 crores, the total income at nearly 5, 14.000 crore grew’’ sources said.