LIC to pump Rs 2.47 lakh crores in bonds and shares

The LIC is all set to invest nearly Rs 2.5 lakh crore in both equity and bond this year, inspite of the volatile stock markets. “We made an aggregate investment of Rs 2.25 lakh crore last year. This year it would increase by 10 per cent,” said LIC Chairman S K Roy.

He added that the LIC for the past few weeks has been investing in the stock markets and said that increase in exposure to equity market, secondary or primary, would depend on the market condition. On its 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.

During 2012-13, the country’s only state-run life insurer registered a 6.5 per cent fall in new premium collection at Rs 76,200 crore compared to Rs 81,500 crore during the earlier fiscal. Apart from urban areas, the company intends to focus on rural areas and Tier II and Tier III cities as it sees a lot of business opportunities in these pockets.