LIC’s Asset Base Goes Past INR 38 Lakh Crore in Fiscal 2021

As of March 2021, the Life Insurance Corporation of India’s asset base had surpassed Rs. 38 lakh crore (US$ 520.38 billion), with total investments of Rs. 36,76,170 crore (US$ 503.50 billion) and a life fund of Rs. 34,36,686 crore (US$ 470.70 billion).

The corporation’s total assets were slightly under Rs. 32 lakh crore (US$ 438.21 billion), total investments were Rs. 30.7 lakh crore (US$ 420.41 billion), and its life fund was Rs. 31.1 lakh crore (US$ 425.89 billion), according to its financial report for the previous fiscal year ending March 2020.

LIC released its balance sheet statistics ahead of its 66th anniversary, which falls on September 1. The balance sheet data reveal some information about the IPO-bound company’s worth. However, a clear indicator will only be given if it shows the business’s embedded value.

The balance sheet improved in the calendar year FY21, thanks to a 3.5% increase in new business (first-year premium), with Rs. 1.8 lakh crore (US$ 24.65 billion) in premium collected from 2.1 crore new policies. Assets increased as well, with new business premiums of Rs. 1.3 lakh crore (US$ 17.80 billion) collected from pension and group superannuation. In addition, the corporation settled 2.3 crore lakh claims totaling Rs. 1.5 lakh crore (US$ 20.54 billion).

The sales give LIC a 66.2% market share in first-year premium income and a 74.6% market share in policy numbers. Another milestone achieved this year was the payment of over 75% of the total renewal premium via digital methods. This was a significant increase from FY20, when premium collection through the other channel accounted for 61.9% of policies and 54.8% of total LIC renewal premium collection.