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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.

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