LIC’s asset base goes past Rs 38 lakh crore in fiscal 2021
MUMBAI: Life Insurance Corporation of India has said that its asset base has crossed Rs 38 lakh crore with total investments of Rs 36,76,170 crore and a life fund of Rs 34,36,686 crore as of March 2021.
According to its balance sheet for the previous fiscal ended March 2020, the corporation’s total assets stood at just under Rs 32 lakh crore, total investments at Rs 30.7 lakh crore and its life fund at Rs 31.1lakh crore.
LIC shared its balance sheet numbers ahead of its foundation day on September 1, which marks its 66th anniversary. The balance sheet numbers provide some insights into the value of the IPO-bound corporation. However, a clear indication will be available only after it reveals the embedded value of its business.
The expansion in the balance sheet in the pandemic year FY21 occurred on the back of a 3.5% growth in new business (first-year premium) with a collection of Rs 1.8 lakh crore premium from 2.1 crore new policies. Assets also grew with pension and group superannuation collecting Rs 1.3 lakh crore as new business premium. The corporation also settled 2.3 crore lakh claims amounting to Rs.1.5 lakh crore.The sales give LIC a market share of 66.2% in first-year premium income and 74.6% in number of policies. Another landmark achieved during the year was the use of digital channels for payment of nearly 75% of the total renewal premium. This was a major jump from FY20 when premium collection through the alternate channel was 61.9% in policies and 54.8% in volume out of the total renewal premium collection of LIC.