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LIC books record profit during April-November
The profit is a 66.3% jump from the Rs 15,578 crore gains in the year-ago period and more than 80% of its full-year target of Rs 32,000 crore which, if realised, will be the insurer’s highest earnings from equity investments in its 64-year history.
Life Insurance Corp. of India (LIC) has booked its highest ever profit of Rs 25,908 crore from selling stocks in the eight months ended November 30, three people, including a top LIC official, said, as the state-run insurer prepares for India’s biggest initial public offering.
The profit is a 66.3% jump from the Rs 15,578 crore gains in the year-ago period and more than 80% of its full-year target of Rs 32,000 crore which, if realised, will be the insurer’s highest earnings from equity investments in its 64-year history.
Last fiscal, LIC had booked a profit of Rs 25,625 crore from stock sales.
The bumper gains have been helped by a resurgent stock market. The BSE’s benchmark Sensex gained 56.4% since April 1. An LIC spokesperson said the insurer is a contrarian investor and focuses on long-term growth. “We are basically buyers when the market sells, and we are sellers when the market buys. This year has been exceptionally good. Along with good buying, leading to an increase in our equity portfolio, we have booked record profits in equity,” the spokesperson said in response to an emailed query.
“The profit booked up to 30 November is the highest ever for this period in LIC’s history,” said the LIC spokesperson.
Regulatory data shows LIC’s combined new business from individual and group single premium policies rose 22.4% to Rs 95,840 crore in April-November. This, along with record profits from share sales, could increase interest in the LIC IPO.
