IPO-bound Life Insurance Corporation of India (LIC) recorded a robust 16.66 per cent increase in income from investments (including capital gains) in financial year 2020-21 at ₹ 2.73 lakh crore (₹ 2.34 lakh crore), its annual report for 2020-21 showed.
Total premium income of LIC grew 6.33 per cent to ₹4.03 lakh crore in 2020-21 as compared to ₹3.79 lakh crore in the previous year.
Long-term investment holding rises
During 2020-21, the insurance behemoth’s long-term investment holding in equity saw a massive jump to ₹5.94 lakh crore from ₹3.31 lakh crore as of end of March 2020.
LIC, which is expected to hit the capital market with an IPO in the fourth quarter this fiscal, is now capitalised at ₹10,000 crore, with the entire holding by the government. The Reserves and Surplus of LIC as of end March 2021 stood at whopping ₹5.94 lakh crore.
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In financial year 2020-21, the total first year premium of life insurers increased by 7.49 per cent to ₹ 2,78,278 crore as compared to ₹2,58,897 crore in the previous fiscal. The number of new policies declined by 2.49 per cent to 2.82 crore in 2020-21 from 2.89 crore in the previous fiscal.
The market share of LIC stood at 66.18 per cent in total first year premium and 74.58 per cent in the number of new policies as of March 31, 2021. LIC reported a slight increase of 0.8 per cent on its Group New Business Premium in 2020-21 to over ₹1.28 lakh crore from ₹1.27 lakh crore in the previous financial year.