LIC may increase investment in equities to Rs 4 lakh cr in FY18: Report

Moneycontrol News

Life Insurance Corporation of India (LIC) is looking to invest around Rs 4 lakh crore in the stock market for fiscal year 2018, Mint reports. This will be its highest ever investment in absolute terms.

On the condition of anonymity, two people privy to LIC’s internal targets, told the newspaper that India’s largest institutional investor took the decision to raise its annual investment by Rs 50,000 crore from FY17 after it saw that there was an uptick in the its premium income for three consecutive quarters.

In FY17, LIC is said to have invested around Rs 3.5 lakh crore, which will be disclosed in LIC’s annual report that will be sent for parliamentary approval in the coming days. The annual report of LIC will be put out only after parliamentary approval, one of the two sources said.

The person went on to add that this hike in LIC’s investment target comes on the back of hope that the uptick in the incoming premiums will continue for FY18.

For the quarter ending June 30, LIC collected Rs 1.5 lakh crore in net premiums. For the third quarter of the last fiscal, LIC had collected around Rs 66,000 crore in premiums, which increased to around Rs 99500 crore for the March quarter.

Given the phenomenal rally in the equity market this year, LIC is finding it hard to invest in stocks, the second  source told Mint.

“Unless there are sharp corrections, which is unlikely any time soon, LIC may not invest much in equities,” the source said.

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