Tuesday June 23, 06:20 PM

LIC sees 400 bln rupees investment in stocks in FY10

KOLKATA (Reuters) - Life Insurance Corp of India plans to invest 400 billion rupees in the local equity market in 2009/10, its top official said on Tuesday.

Last financial year, LIC had invested a similar amount in the equity markets, Chairman T S Vijayan told reporters after a seminar.

LIC is one of the largest investors in the Indian equity market.

"We will decide as it comes in corporate debt," he added.

The insurer is also looking at 20 percent rise in total premium income in the current financial year, Vijayan said.

In 2008/09, LIC's total premium income was at 1.55 trillion rupees.

"So far in the current financial year, our total premium is growing at around 20-25 percent," the chairman said.

On the new premium income, which declined by nearly 10 percent during 2008/09, Vijayan said LIC is expecting a growth of 25 per cent during FY10.

"Last year, growth in new premium income took a hit largely due to economic slowdown, but this year we are expecting a growth of 25 percent over 520 billion rupees reported during 2008/09," he added.

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