'Incorrect,' says LIC on report of insurer looking to raise $6-7 bn by selling land, buildings

The asset monetization plan comes when the state-run insurer is struggling to protect its market share.

Life Insurance Corporation of India (LIC) is planning to raise $6-7 billion from selling its plots and commercial buildings, Livemint reported.

The insurance behemoth has put together an internal team to work out a sale plan for its real estate assets across the country which may start with Mumbai, the report cited sources as saying.

However, the state-run company denied the report and said there was no such plan. "... we hereby clarify that news published in the mainstream media is incorrect," it said.

The asset monetisation plan comes as the state-run insurer is struggling to protect its market share amid growing competition from the private sector.

Some of LIC's premium assets include the Jeevan Bharti building in Delhi's Connaught Place, LIC building in Chittaranjan Avenue in Kolkata and buildings housing the Asiatic Society and Akbarally's in Mumbai.

An LIC executive said the actual value may be five times the current valuation.

Moneycontrol couldn't verify the report independently.

LIC has maintained its stronghold in the Indian insurance sector, commanding a 58.8 percent market share in first premium income in FY24.

With an eye on expansion, the management outlined plans to penetrate Tier-2 and 3, and rural areas, and to fortify its position against private competitors.

The company reported a 2.5 percent year-on-year rise in net profit at Rs 13,762 crore for the March quarter of the financial year 2023-24, up from Rs 13,421 crore in the year-ago period.

The country’s largest insurer’s asset quality improved in the final quarter of FY24. The insurer also announced an interim dividend of Rs 6 a share.

The assets under management (AUM) increased to Rs 51.21 lakh crore as on March 2024 as compared to Rs 43.97 lakh crore on March 31st, 2023 registering an increase of 16.48 percent year on year.

Just before close on June 18, the LIC stock was trading at Rs 1,055.95 on the National Stock Exchange, down 1.02 percent from the previous close.