LIC’s total premium income up 12% in nine months of 2016-17

MUMBAI: Life Insurance Corporation (LIC) posted a 12.43% growth in the total premium income at ₹1.45 lakh crore for the first nine months of the current fiscal end, from ₹1.29 lakh crore in the corresponding period a year ago.

Total assets grew 12.81% to ₹24.42 lakh crore during the period, compared to ₹21.65 lakh crore a year ago. Gross total income grew 15.76% to ₹3.37 lakh crore, compared to ₹2.91 lakh crore. The new business performance saw a 40.11% increase in first-year premium during the period under review.

“Our performance is in line with expectation. The corporation has recorded healthy results based on its strong fundamentals and core values,” LIC chairman VK Sharma said. “Trusted customers across the country have supported and enabled us to report a robust financial performance. We endeavour to drive both customer satisfaction and profitability, and focus on technology to improve customer experience and organisational efficiencies.”

Talking about LIC’s expectation from new business in the current fiscal, he said: “We hope to achieve ₹35,000 crore from new business on individual basis, from ₹ 31,000 crore achieved so far. Overall premium target remains unchanged.”

Pension and group security business also grew 27% to ₹51,004 crore during the nine-month period, from ₹40,118 crore a year ago. Moreover, under social security schemes, LIC has insured 5.81 crore lives. Total policy payments amounts rose 18.63% year-on-year to ₹1.12 lakh crore. LIC added more than 44,000 agents to its rolls so far.

In equities, the company has invested ₹39,000 crore during the period, down from ₹64,000 crore a year ago.

“So far as the investment part is concerned, we are generating investing surplus and we keep on investing as per guidelines,” Sharma said. “This year in equity investments we are subdued, deliberately because markets have gone up very high.”