LIC plans to invest 2,00,000 cr across asset classes

Life Insurance Corporation of India plans to invest Rs 2,00,000 crore (Rs 2,000 billion) across asset classes in FY 11, up from the Rs 1,92,000 crore (Rs 1,920 billion) last fiscal.

"We have internally targeted to invest Rs 2 lakh crore (Rs 2 trillion) across asset classes by end-this fiscal," LIC's chairman, T S Vijayan, told reporters, after announcing a valuation surplus on investments of over Rs 23,000 crore (Rs 230 billion) last fiscal.

The targeted premium collection for the year is Rs 2,01,000 crore (Rs 2,010 billion), he said.

In the first quarter of 2010-11, LIC invested Rs 39,000 crore (Rs 390 billion), of which Rs 10,000 crore (Rs 100 billion) was in equities, he said.

Vijayan, however, refused to give the equity component of the targeted Rs 2,00,000-crore (Rs 2,000-billion) investment, saying it depends on the premium collection from the Unit-Linked Insurance Policies.

For 2009-10, ULIPs' share in the total premium pie of Rs 1,85,000 crore (Rs 1,850 billion) was 75 per cent and the total equity investments made by LIC stood at Rs 61,000 crore (Rs 610 billion).

If the markets are good, people invest in ULIPs and if the interest rates are good, their preferences turn to non-linked policies, Vijayan said.