 "LIC sees 40% growth in new premiums in March")
Life Insurance Corporation of India (LIC) has seen a 40 per cent growth in new premiums for March on a month-on-month basis, according to LIC Chairman S K Roy. Speaking on the sidelines of ET Financial Inclusion Summit here on Wednesday, Roy said LIC would end the financial year on a positive note.
“Since our base is high, a 40 per cent growth is substantial. We aim to have a 15 per cent growth with respect to new premiums even next financial year,” said Roy. He said even though this was a challenging year, the insurer would be able to show good growth.
With respect to long-term bonds to be floated which would be of 20 years and 40 years duration from the next financial year, Roy said: “This is a positive move from the government. There will definitely be a good demand for such papers, especially from life insurers. I am sure LIC will take advantage of this.”
Long-term bonds of 40-year maturity are to be auctioned by the central government for the first time in the next financial year. Finance Secretary Rajiv Mehrishi had on Monday said the government would use these bonds to borrow up to Rs 10,000 crore and the dates were yet to be finalised for the launch.
According to the issuance calendar of marketable dated securities for the first half of the financial year (April-September) issued on Monday, for every week beginning April, the Reserve Bank of India will auction a 20-year and above security for Rs 3,000-4,000 crore. The government will borrow Rs 3.6 lakh crore in the first half.
Roy said LIC had filed a Unit-Linked Product (Ulip) with the insurance regulator and it would soon launch this. Ulips constitute less than 10 per cent of the total product mix of LIC and the rest comprises traditional products.
In March, LIC had also committed to invest Rs 1.5 lakh crore in the Indian Railways over five years for development of various commercially-viable projects. Roy said LIC might look at such proposals in the future, but nothing was on the table for now.
Allaying concerns of a fall in new premiums, Roy said LIC would have to double the number of products in the next financial year, compared to FY15.
While government securities constitute the highest chunk in LIC’s investment corpus, Roy said the insurer would also look at corporate bonds and equity. He added that as a large financial player, LIC would not invest in low-rated instruments such as those below A1 rating.
State Bank of India (SBI) is planning a Rs 15,000-crore follow on public offer (FPO) in FY16. Roy said LIC would appraise the FPO as and when it is on offer. “Last year, we invested substantially in the SBI QIP and it proved a good decision,” he said.
“Since our base is high, a 40 per cent growth is substantial. We aim to have a 15 per cent growth with respect to new premiums even next financial year,” said Roy. He said even though this was a challenging year, the insurer would be able to show good growth.
With respect to long-term bonds to be floated which would be of 20 years and 40 years duration from the next financial year, Roy said: “This is a positive move from the government. There will definitely be a good demand for such papers, especially from life insurers. I am sure LIC will take advantage of this.”
Long-term bonds of 40-year maturity are to be auctioned by the central government for the first time in the next financial year. Finance Secretary Rajiv Mehrishi had on Monday said the government would use these bonds to borrow up to Rs 10,000 crore and the dates were yet to be finalised for the launch.
According to the issuance calendar of marketable dated securities for the first half of the financial year (April-September) issued on Monday, for every week beginning April, the Reserve Bank of India will auction a 20-year and above security for Rs 3,000-4,000 crore. The government will borrow Rs 3.6 lakh crore in the first half.
Roy said LIC had filed a Unit-Linked Product (Ulip) with the insurance regulator and it would soon launch this. Ulips constitute less than 10 per cent of the total product mix of LIC and the rest comprises traditional products.
In March, LIC had also committed to invest Rs 1.5 lakh crore in the Indian Railways over five years for development of various commercially-viable projects. Roy said LIC might look at such proposals in the future, but nothing was on the table for now.
Allaying concerns of a fall in new premiums, Roy said LIC would have to double the number of products in the next financial year, compared to FY15.
While government securities constitute the highest chunk in LIC’s investment corpus, Roy said the insurer would also look at corporate bonds and equity. He added that as a large financial player, LIC would not invest in low-rated instruments such as those below A1 rating.
State Bank of India (SBI) is planning a Rs 15,000-crore follow on public offer (FPO) in FY16. Roy said LIC would appraise the FPO as and when it is on offer. “Last year, we invested substantially in the SBI QIP and it proved a good decision,” he said.