About 25% of Rs 39.6 billion in assets under management in equities
As of September 30, 2021, assets under management of Life Insurance Corporation stood at Rs 39.56 trillion, which is more than 3.3 times the total AUM of all private life insurers in India and more than 1.1 times the AUM of the entire Indian mutual fund industry.
LIC’s investment portfolio consisted of 37.50% central government securities, 24.78% equity securities, 24.61% government securities and 8.07% corporate bonds.
Around 96% of LIC’s debt assets under management were invested in AAA-rated sovereign securities. Over 90% of equity investments on a stand-alone basis were in stocks included in the Nifty 200 and BSE 200 indices.
Other highlights of LIC’s finances:
• Net profit on sale/redemption of policyholder investments was Rs 23,800 crore, Rs 19,387 crore, Rs 39,809 crore and Rs 23,246 crore for FY19, FY20, FY21 and for the first six months of FY22, respectively.
• Gross written premiums on a consolidated basis increased at a CAGR of 9.21% from FY19 to FY21.
• Market share of 62.5% and 62.9% for the renewal premium for fiscal year 21 and the six months ended September 30.
• New business premium increased at a CAGR of 13.49% from FY2019 to FY21.
• Issued approximately 21 million individual policies in FY21, representing approximately 75% market share in new individual policy issuance.
• Expense ratios as a percentage of total premium for FY19 (8.4%), FY20 (9%), FY21 (8.7%) and six months of FY22 (10.1%) below the median of the ratios of operating expenses of the top five private players by 13.0-11.9% over the same period.
• Profit after tax on a consolidated basis fell from Rs 2,627 crore for FY19 to Rs 2,974 crore for FY21.
(Edited by : Amrita Das)
First post: STI