Skip to main content

LIC plans to invest 2,00,000 crore across asset classes in FY 11

Description  :  Corporate
Date  :  Aug-06-2010

Life Insurance Corporation of India (LIC), Country's public sector life insurer, plans to make an investment of Rs 2,00,000 crore across asset classes in FY 11 as against Rs 1,92,000 crore invested in the last fiscal.

Commenting on this investment, LIC's Chairman, T S Vijayan, told reporters "We have internally targeted to invest Rs 2 lakh crore across asset classes by end-this fiscal".

Moreover, he said that the premium collection targeted for the year is Rs 2,01,000 crore.

LIC in the first quarter of 2010-11 has made a total investment of Rs 39,000 crore and out of this Rs 10,000 crore was invested in equities, he said.

However, Vijayan did not divulge the equity component of the targeted Rs 2,00,000 crore investment but he said that it depends of the collection of premium from the Unit-Linked Insurance Policies (ULIP).

Meanwhile, ULIPs' share in the total premium pie of Rs 1,85,000 crore for 2009-10, stood at 75 per cent while the total equity investments made by LIC stood at Rs 61,000 crore. Vijayan said that LIC also has a headroom to issue infrastructure bonds of Rs 5,000 crore this financial year but no timeline has not yet decided for it.

He also said "Under a new policy, we can issue bonds to the tune of 25 per cent of our incremental investments of Rs 25,000 crore in infrastructure sector last year".

On the top of this, Vijayan said that Rs 1,000 crore has been targeted by LIC to invest in real estate and property this fiscal.

On the other hand, the public sector insurer will be adding over the usual three to four new policies per year this financial year due to the revisions in ULIP norms announced by industry regulator IRDA, which will become effective from September 1.

Meanwhile, LIC is all set to spread out its operations in South East Asia. The Insurance major is eyeing to open a subsidiary in Singapore.

The official said that the LIC is in the final stages of getting the clearance from Singapore's regulatory authorities.

The subsidiary company is expected to commence operations within the next 3 months time.

LIC is eyeing for markets like - Hong Kong, China and Malaysia to sell its insurance and mutual fund products.

Comments

Popular posts from this blog

Biotech Regulatory Authority bill a huge Step for Future Market Development: Environment Minister

Biotech Regulatory Authority bill a huge Step for Future Market Development: Environment Minister Description  :  Industry Date  :  Aug-19-2010 The Biotechnology Regulatory Authority bill, scheduled to be introduced in Parliament imminently, will not open the floodgates to genetically modified (GM) food. Environment Minister Jairam Ramesh said, "I believe that when the Bill will be introduced, it will address the concerns that have been expressed by the civil society groups that it will open floodgates for all GM foods. Nothing like it". He further added, "It's just exaggerated notion of non-reading of the Bill. Once it is presented in Parliament, we all will see that the integrity of environmental assessment process has been maintained" The Bill seeks to create a new body to regulate research, manufacture, import and use of products of modern biotechnology. The need for a biotech regulator was highlighted during the recent controversy over introduction

Current assets Managements

Current assets Managements - Working Capital Management   These are the assets that are generated during the course of operation and are capable of converting into cash benefits in a given span of time. It's the responsibility of the finance department to ensure that company has sufficient funds to invest in the current assets otherwise it will hamper the ongoing business operations and may obstruct production. Therefore the department should not block funds in un-necessary activities and should ensure optimal utilization of resources and funds

BSLI reports profits worth around INR 9 Crore for Q1 FY 2011

Description  :  Corporate Date  :  Aug-04-2010 For the quarter ending June 2010, the Birla Sun Life Insurance (BSLI) netted a profit of around INR 9 crore. This was the first time that the company reported profits, since the time of its commencement. Last year the company reported a loss of around INR 111 crore. The statement issued by the company said, "Driven by the growing size of in-force book, BSLI achieved a net profit of Rs 9 crore." In addition to this, between April 2010 and June 2010 the company witnessed a growth of around 18% in the total premium income. The total premium income reached around INR 1,143 crore during the same period. Also, during the same period the income from new business premiums reached INR 473 crore, representing a growth of around 7%. Also, the income from the asset management grew by around 44% to reach INR 16,841 Crore during Q1 FY 2011 up from around INR 11,670 crore in Q1 FY 2010. Established in 2000, Birla Sun Life Insurance Com