In an exclusive interview with ETNOW, Kumar said while the economy is seeing a slowdown, life insurance as a sector is doing well. “The potential is huge, and consolidation is still far away,” he said.
LIC had total asset under management in excess of Rs 31 lakh crore as of July end.
Kumar said LIC has invested Rs 33,000 crore in equities this year. “The insurer has made Rs 13,000 crore profit on this," he said. Last year, it made Rs 23,000 crore profit from equity.
In an interview to TOI earlier this month, Kumar had said LIC is not worried about market movements, as it is a long-term player. “As long as a scrip gives returns over 10-15 years, it is good enough.” Kumar said his company does own research before investing and evaluates its portfolio once in a quarter.
LIC has stakes and board seats in many companies but is not involved in running day-to-day operations of any, Kumar said on Wednesday.
Bulk of LIC’s corpus is still invested in debt, he said. “We have seen slowdown cycles before, and we shall ride over this one as well,” he said.
Kumar said his company plans to add 16,000 officers but does not have plans to add branches. He said LIC is integrating smaller branches with IDBI Bank branches and is going digital fast to seek technology-led business growth via new products.
Kumar said the PSU insurer has managed to recover some of the lost market shares in smaller cities. The company’s fifth year persistency ratio is better than those of private players, he claimed.
“People have so far preferred buying LIC’s term and endowment products,” Kumar said, adding that his company has consciously stayed away from Ulips, but will gradually start adding them.
Most of the challenges on builder loans are behind us on the home loan portfolio, he said.
He also said LIC’s mutual fund business should do well going forward with a new team in place.
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6 Comments on this Story
cruz396 days ago
LIC is the best Ponzi scheme backed by the government. Can some one explain LIC investment in IDBI bank a total loss making bank !!! Also how can LIC make profits in a falling market unless they are the ones who started the fall . Even Junjunwala lost money , something not right or beyond normal
cruz396 days ago
LIC is a Ponzi scheme backed by the government there is no in-depth analysis when Govt wants them to take the markets up they will ask them to invest . It’s like the RBI CBI etc . That day is not far when it does down like PMC . Agents are the ones who
make the money
Siddhartha Datta396 days ago
Lic invested 33K and made profit of 13K in 10 months, almost 40% in current bear market. Amazing. What is the secret behind it? If Mr Kumar can through some light on this then small investors also make some money.