For the first time in 65 years, the country’s largest life insurer Life Insurance Corp. of India (LIC) booked a record Rs 37,000 crore profit from share sales in 2020-21.
The current profit is a 44.4% jump against its ₹25,625 crore profit from stock sales in fiscal 2020.
During the fiscal year, India’s largest institutional investor purchased shares amounting to ₹94,000 crore, also its highest ever.
Most valuable insurance brand
Meanwhile, state-owned LIC has emerged as the third strongest and the tenth most valuable insurance brand globally, according to a report by Brand Finance Insurance 100 2021, a London-based brand valuation consultancy firm Brand Finance.
Even as the total value of the worlds top 100 most valuable insurance brands declined by 6 per, LICs brand value increased by almost 7 percent to $8.65 billion, as per the report.
How LIC made profit?
In terms of divestment, LIC remains the governments biggest financial backer.
The profits are mainly generated through the sale of shares in its large, non-linked portfolio, which comprises traditional life insurance policies.
This in turn helps the life insurer to pass on the profit through better bonuses and returns to policyholders and better dividends to the government.
The record profit helps LIC to expand its investible surplus that goes on to aid stock markets during uncertain times besides garnering new customers because of its ability to generate such profits.
Comment from Managing Director
Mukesh Kumar Gupta, “We booked maximum profit by churning the equity portfolio, depending on available opportunities and also to maintain a long-term high-performing portfolio.
The sale has been across sectors and driven by our focus on generating reasonable profits and available market opportunities” – replied to mint
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