 "LIC will invest Rs 40,000 cr in equity this fiscal: S K Roy")
India's largest insurance company Life Insurance Corporation of India (LIC) is betting on increase in premium collection to revive business growth. In an interview with Manojit Saha & M Saraswathy, S K Roy, the newly appointed chairman of LIC talks about his strategies for the fiscal. Excerpts:
In the first two months of FY14 too, LIC has seen a drop in premiums. Does this worry you?
There was a slight drop in premium last year and in the first two months of this fiscal due to the absence of one product in our portfolio. Growth is a business imperative and we wish to collect Rs 33,000 crore of premiums in this fiscal.
What is your investment target for this fiscal?
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We are planning to invest about Rs 2.25 lakh crore, out of which Rs 40,000 crore will be in equity.
Disinvestment has been an area where LIC has played a big role. Have you set aside any corpus for it?
We take a decision on disinvestment, as and when we see a good opportunity in it. Hence, in the future too, we will look for these opportunities as a long term investor. But we are not setting aside any corpus for it.
What are your priorities as the new chairman?
Growth is my topmost priority. Apart from this, adjusting to the new regulatory regime for products is another goal. Further, optimal utilisation of all our available resources will be an area of focus.
With finance ministry planning to notify 30% equity investment cap for LIC, would there be any immediate change in your equity portfolio?
We are engaging with the regulator on this issue and would want an increase in it. Till then, we are sticking to the 15% cap imposed by Insurance Regulatory and Development Authority (Irda).