- Posted August 6, 2014 by
LIC to Invest INR 2.25 Trillion on the Prospects of Post Budget Market Boom
Mumbai. LIC of India has announced mega investment to the tune of INR 2.25 trillion in the financial markets and expects good returns through the potential upturn of market indices in response to the presentation of General Budget by the new Indian government on July 10, 2014. Further boosting its presence at the financial markets, LIC’s this fiscal investment is up by 6.6% as compared to the previous fiscal. The amount stated could be further revised, said LIC officials.
The pre Budget Economic Survey forecasted Indian growth figure somewhere between 5.4% – 5.9% for the current fiscal and Life Insurance Corporation of India is therefore expecting a significant turnaround of the markets thus boosting its prospects! For the proposed investment of INR 2.25 trillion, the LIC official stated that the company would be favoring buying of the government securities on account of market highs in the recent times. The officials stated that the final investment amounts will be decided depending upon the premium collections and surpluses available with the company. As of 2014, LIC garnered INR 90123.76 as first year premiums while competing against the private players. LIC’s investment portfolio will also be governed by the insurance regulation norm of investing 50% of investable surplus in government securities.
Of the 957 companies which have disclosed their share holding patterns by the end of June, LIC has holding in 125 of them and the value of LIC’s net sales in these has been estimated at INR 1900 crores by 14 July 2014. The LIC official stated that with the majority of this year investment going to government securities, the estimates will be determined on the basis of government borrowing.