LIC Chairman VK Sharma said that they will not be aggressive in the equity investments since they are a contrarian player in the market.
The country's largest insurance company Life Insurance Corporation of India (LIC) has an appetite to invest another Rs 10,000 crore to Rs 20,000 crore in government bonds this financial year. LIC Chairman VK Sharma said that they will not be aggressive in the equity investments since they are a contrarian player in the market.
The life insurer has set a target of Rs 38,000 crore as first premium income for FY18 and has already collected Rs 27694.45 crore.
On the government securities side, LIC has an outstanding investment of Rs 16.15 lakh crore for H1 FY18 as compared to Rs 13.69 crore of same period last year.
In terms of equity, the insurance company has invested Rs 44,000 crore in the equity market as of November 30, 2017 and it is likely that it may touch Rs 50,000 crore by end of the financial year. The profit on sale of equity stood at Rs 12,374 crore for first six months of FY18 as compared to Rs 10643 crore in same period of FY17, showing a 16.3 percent growth.
In FY17, LIC had invested Rs 47,000 crore in the equity market. Their outstanding equity investments stood at Rs 5.71 lakh crore for H1 FY18 compared to Rs 4.96 lakh crore in the same period last year.The insurer is also understood to have put in around Rs 9000 crore into the intial public offers of companies like General Insurance Corporation of India and New India Assurance.