LIC profit jumps 145% in Q1 on sale of equity investment

Life Insurance Corporation of India (LIC) reported a 145% jump in profit on sale of equities in the first quarter of the current financial year, said a senior executive. The corporation made a net profit of Rs 6,100 crore in the April-June 2017 quarter against Rs. 2,489 crore in the year-ago period.

“This year our investment profit growth is 145%. We have earned over Rs. 6,100 profit on sale from equity in April-June 2017 from Rs. 2,489 crore in April-June 2016. It (equity investment) will be in this range Rs 50,000) this financial year," said chairman VK Sharma. So far this year, the company has invested Rs . 16,000 crore in equities.

LIC will look to invest in IPO of General Insurance Corp Re, said Sharma. GIC Re and New India Assurance are in the process of listing on the stock exchanges.

“I can say without doubt that LIC will invest in GIC Re," said Sharma. “I can't say for rest of the companies. We have to take investment committee's approval for investment in other companies. There is no restriction from regulator or
government."

The country's largest life insurer has less than Rs. 500 crore in exposure to 12 accounts under Insolvency and Bankruptcy Code. Its gross NPA is Rs 18,000 crore, out of which Rs. 14,000 crore is under joint lending forum and Rs. 4,000 crore lent individually. “We will grow in doubledigits," said Sharma. “We are targeting new business income of Rs. 38,000 crore this year."