Life Insurance Corporation of India (LIC) has announced its numbers for the first nine months of the current fiscal ending 31st December, 2016, and they look promising. The total assets of India’s largest insurance agency increased by 12.81% to Rs.24.42 trillion, from Rs.21.65 trillion a year ago.
The company also saw a growth of 12.43% in the total premium income, which stood at Rs.1.45 trillion during the nine-month period compared to Rs.1.29 trillion last year. LIC’s gross total income rose from Rs.2.91 trillion in the corresponding period last year to Rs.3.37 trillion, a surge of 15.76%. The insurer also registered Rs.1.12 trillion in total policy payments, up 18.63% from last year’s Rs.94,576 crore.
LIC Chairman V.K. Sharma, who was appointed in December 2016, said, “Our performance is in line with our expectation. The Corporation has recorded healthy results based on its strong fundamentals and core values. We endeavour to drive both customer satisfaction and profitability and focus on technology to constantly improve customer experience and organisational efficiencies.” He was speaking at a press conference in New Delhi on Monday.
First-year premiums grew by 40.11%, indicating a healthy growth in new business. Mr. Sharma said the company hopes to achieve Rs.35,000 crore from new business on the individual basis, more than the Rs.31,000 crore currently achieved. “Overall premium target remains unchanged by the fiscal-end,” he said.
LIC’s special diamond-jubilee scheme ‘Bima Diamond’ gave the insurer Rs.322 crore in premium collection with sale of over 5,86,000 policies. The policy was launched in September 2016. The Corporation recorded a rise of 27% in its pension and group security business, which went up from Rs.51,004 crore in the nine-month period from Rs.40,118 crore from the year-ago period.
Around 44,000 new agents have joined LIC so far in the current fiscal year.
However, LIC’s investment in equities went down from Rs.64,000 crore in the same period the previous year to Rs.39,000 crore in the period ending 31st December, 2016. Justifying this, Mr. Sharma said, “So far as investment part is concerned, we are generating investing surplus and we keep on investing as per guidelines. This year in equity investments we are subdued, deliberately because markets have gone up very high.”