Unfazed by volatile stock markets, insurance behemoth Life Insurance Corp (LIC) plans to to invest Rs. 250,000 crore in both equity and bonds this year.
“We made an aggregate investment of Rs. 2.25 lakh crore last year. This year it would increase by 10%,” said SK Roy, chairman, LIC.
India’s largest insurer is expected to pump in Rs. 250,000 crore in shares and bonds.
Increase in exposure to equity market, secondary or primary, would depend on the market condition, he said, adding, LIC has been investing in stock markets in the past few weeks as there are opportunities.
On its earnings, LIC expects to achieve a 15% growth in first-year premium income in the current fiscal year against a contraction last fiscal.
During 2012-13, LIC registered a 6.5% fall in new premium collection to Rs. 76,200 crore against Rs. 81,500 crore in the previous fiscal.
Apart from urban areas, the company intends to focus on rural areas and smaller towns as it sees a lot of business opportunities in these pockets.
In order to increase its presence, LIC recently opened 300 mini offices across various smaller cities in the country.
The opening of these offices is part of a plan to set up 1,700 such offices in locations with population of 10,000 and above by December.