So far LIC invested Rs.9,600 Cr. in the equity market

In an interview with CNBC-TV18, N Mohanraj, ED, LIC says:

  As of yesterday, we have invested Rs 9,600 crore in the equity market. When compared to corresponding period last year, it was only Rs 3,600 crore. That means in the span of nearly three months, we have pumped in a net addition of Rs 6,000 crore.

    Wealth Plus closed on May 8, during 90 days of its existence, it was closed under scheme, we have collected over Rs 11,000 crore, of course it was split over this financial year. In this financial year itself, we got about Rs 3,800 crore from that scheme and another scheme Market Plus is also doing very well.

   Our investment in various asset classes for the year will be a little over Rs 2 lakh crore. Anyway we will not be investing less than Rs 60,000 crore in equity whether it is secondary or primary market put together, will not be less than that.

Source: moneycontrol.com, 25.6.2010

LIC hires Deloitte for its risk management plan

With stock markets turning increasingly volatile, India’s largest capital market player Life Insurance Corporation (LIC) with an investment portfolio of Rs 11 lakh crore is attempting to install global best  risk management practices for its day-to-day operations. The corporation recently roped in global consultant Deloitte Touche Tohmatsu to devise best risk management for its swelling investment portfolio. Thomas Mathew, managing director, LIC, confirmed the development to FE.

“We intend to have the best risk management practices in the world to safeguard our investments and maximise our returns,” said Mathew, adding LIC has made a profit of Rs 9,000 crore from churning its equity portfolio in 2009-10.

In the first phase, an in-depth diagnostic study of LIC’s existing systems and practices in the whole gamut of its investment operations has been conducted for three months in the areas of risk governance, risk measurement, risk management and risk reporting. A gap analysis report has already been submitted with a recommendation which is being considered for preparing an implementation road map.

In the future, the focus will be on risk-related activities and further initiatives will be taken to develop a risk vision document where performance measurement will play a key role, explained Mathew.

LIC’s gross investments in various asset classes for 2009-10 stood at Rs 1,91,736.93 crore, showing a positive variation of 15.72%. Active secondary market and a strong pipeline of initial public offerings (IPOs) helped the corporation increase its exposure to equities. LIC’s gross investment in equities for 2009-10 stood at Rs 61,463.05 crore showing a positive growth rate of 51.91%.

The standard assets of the corporation are consistently maintained above 99% and gross non-performing assets (NPA) have fallen from 2.40% to 1.21% in 2009-10. LIC’s investment income has grown by 28.06% to Rs 70,672 crore in 2009-10. The corporation’s unit-linked insurance plan fund size has crossed Rs 1,80,500 crore in 2009-10.

Source:Indian Express