The period of last few months turned out to be an excellent one😊 for Life Insurance Corp (LIC), India’s leading insurance company.
It made a profit of nearly Rs. 12,000 crore💰 from April till August by selling a part of its large equity holdings.
It came on the back of a major revival📈 in the stock market after it had crashed in March at the onset of the Covid pandemic.
Notably, the above-mentioned figure is ☝️10-12% higher than last year’s number for the same period when markets were comparatively even better than this year.
Will bring cheers to many
The huge profit earned by the LIC could lead to higher bonuses🤑 for its policyholders and better valuation for the company’s upcoming IPO🎊.
It will also add to LIC’s investible surplus which if it puts in the equity markets, will provide support👍 to the country’s domestic markets.
A Seasoned Player
Being a long-term investor, LIC has always enjoyed an advantage✌️ in equity trading.
It is India’s largest institutional investor with assets worth around 34 lakh crores😎.
LIC has been booking a profit of Rs. 18,000-25,000 crore from equity sales each year🗓️ in the past 10 fiscal years.
The company which has stakes in at least 350 listed firms increased↗️ its holdings in over 50 of them during the June quarter when the equity market was trading lower.
Meanwhile, it has also bought equities worth Rs. 32,000 crore😳 so far since April.
Talking about its core business, LIC’s new business premium income in April-July dipped slightly🔽 to be at Rs. 15,170 crore against Rs. 15,311 crore a year ago.