Life Insurance Corporation of India (LIC) has emerged as a major player in the Indian equity market with exposure in 282 companies through investments in their shares as of June 30, 2024. The corporation’s Managing Director and CEO, Siddhartha Mohanty, recently announced plans to make fresh investments of around Rs 1.30 trillion in equities during the current financial year, highlighting LIC’s continued confidence in the market.
During the first quarter of the financial year 2024-25, LIC made significant investments of about Rs 38,000 crore in shares, a substantial increase from Rs 23,300 crore in the same period a year ago. This move paid off well for LIC, as the corporation earned a profit of Rs 15,500 crore from its equity investments during the first quarter, marking a 13.5% increase quarter-on-quarter.
Mohanty expressed optimism about the market conditions and price movements, stating that LIC is looking to invest a substantial amount similar to the previous financial year’s investments. In FY’24, LIC made investments totaling around Rs 1.32 trillion, showcasing its commitment to capitalizing on market opportunities.
The market value of LIC’s investments in various companies‘ stocks stood at approximately Rs 15 trillion at the end of June, reflecting the corporation’s significant presence in the equity market. Additionally, LIC’s Assets Under Management (AUM) saw a notable increase to Rs 53,58,781 crore as of June-end, up from Rs 46,11,067 crore in the same quarter the previous year, representing a 16.22% growth.
Furthermore, LIC’s total investments witnessed a substantial growth, reaching Rs 49,75,514 crore as of March 31, 2024, compared to Rs 42,44,852 crore in March 2023. The equity investment portfolio accounted for Rs 12,39,740 crore, while other investments totaled Rs 37,35,774 crore, showcasing LIC’s diversified investment strategy.
In terms of financial performance, LIC reported a 10% increase in net profit to Rs 10,461 crore for the June quarter of 2024, compared to Rs 9,544 crore in the same period last year. The corporation’s total income also saw a significant rise to Rs 2,10,910 crore during the latest June quarter, up from Rs 1,88,749 crore in the year-ago period. Additionally, total premium income for the quarter increased by 16% to Rs 1,13,770 crore, highlighting LIC’s strong financial performance.
Overall, LIC’s strategic investments, robust financial performance, and continued focus on market opportunities position the corporation as a key player in the Indian equity market, driving growth and value for its stakeholders.