With the stock markets hitting record highs, state-run insurance behemoth Life Insurance Corporation of India (LIC) netted a profit of Rs. 6,100 crore from its equity investments for the April-June period, a 145% jump over the same period of the previous year, its Chairman V.K. Sharma told reporters.

The 30-share Sensex has gained 21.4% in the current calendar year and is among the best performing equity indexes across regions in 2017. In the quarter ended June 30, the Sensex gained 1,301.11 points, or 4.39%.

LIC has invested about Rs. 15,000 crore in the current financial year, Mr. Sharma said.

“You will see double-digit growth in equity investments in this financial year [as compared to the previous fiscal],” Mr. Sharma said.

LIC had invested Rs. 43,800 crore in the previous financial year in the equity segment.

LIC is the largest domestic financial institution in the equity market with exposure across sectors. It holds significant stakes including LIC Housing Finance (40.3%), TCM (23.7%), Simplex Realty (22.9%), Corporation Bank (18.9%), ITC (16.2%), L&T (15.7%), Nalco (14.5%), NTPC (12.1%), Tata Power (12.3%) and Tata Steel (11.9%).

LIC is also among the largest shareholders in the banking segment with large stakes in Bank of India, Allahabad Bank, Central Bank of India, Axis Bank, IDBI Bank, Canara Bank, Punjab National Bank and Dena Bank among others.

When asked whether LIC would participate in the public issues of state-run entities, Mr. Sharma said the corporation would definitely participate in the public issue of GIC Re — the state-run reinsurer.

He also said the insurance regulator had asked LIC to cut its stake below 15% wherever the investment was not ‘strategic’ in nature.

LIC said it expects to post double-digit growth in new business premium in the current financial year.

Claims in flood-hit areas

Mr. Sharma said LIC had taken several measures to beef up the claim settlement process in the flood affected areas of Gujarat and Assam.

“The death certificate is not insisted on and LIC will accept the certificate from authorised government officials or the proof that the claimant has received ex-gratia from the government as alternate proof of death.”

LIC had also extended late fees on premium for 6 months and said duplicate policies would be issued free of cost to customers who had lost their policies.

“In respect of social security schemes including Pradhan Mantri Jeevan Jyoti Bima Yojana and Pradhan Mantri Jan Dhan Yojana, the Indian Banks’ Association (IBA) and the partner banks for PMJJBY are being informed about the special procedures and relaxations in claim requirements so as to expedite the settlement of claims,” LIC said.