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LIC hopes to mirror last year’s $4.9 billion profit from equity sales – chairman

Life Insurance coverage Corp. of India () hopes to ebook revenue of round 400 billion rupees ($4.90 billion) from promoting shares it holds in 2022/23, the state-run agency’s chairman advised Reuters, mirroring the revenue made final 12 months as market situations stay risky.

India’s benchmark Nifty 50 has risen 6.51% up to now this 12 months as of Thursday’s shut, after dropping 9.07% within the first half of the calendar 12 months.

“We hope that earnings from fairness portfolio can be identical as final 12 months, relying on market situations,” Mangalam Ramasubramanian Kumar stated.

“Whereas we’re long run traders and in addition contrarian in nature, we’re not averse to reserving earnings,” Kumar stated.

LIC is aiming to extend its share of premium or taking part insurance policies to fifteen% in two years from about 9% presently, Kumar stated.

“We’re wanting ahead to rising this to 25% over a 4 to five 12 months interval,” he stated.

Non-participating or ‘non-par’ insurance policies have fastened returns and don’t require an insurer to share earnings with policyholders.

LIC historically targets taking part enterprise versus personal opponents who’ve been enterprise extra high-margin non-par enterprise.

India’s largest insurer listed in Could following a document $2.7 billion share sale, however the inventory is now buying and selling over 34% decrease than its problem value.

LIC’s administration is making an attempt to revive worth for shareholders, and not too long ago transferred funds from its non-par fund to its shareholders fund.

“The change in product combine is evident indicator of our efforts in sustaining our market management place. We hope that ultimately the markets will worth our efforts which can be making the outcomes which can be seen,” Kumar stated.

The insurer is banking on its robust agent community to promote each taking part and non-participating insurance policies, Kumar stated, and is trying to rent extra brokers and improve the typical variety of insurance policies bought per agent by 12%-18%.

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