Life Insurance Corp to infuse 450 bln in stock markets in current fiscal 2011-12

 India's largest life insurer Life Insurance Corporation of India (LIC) is looking to inject Rs 450 billion in the stock markets this year, of its total investment of Rs 2.15 trillion earmarked for the current financial year 2011-12.

The life insurer has already infused Rs 50 billion so far since April.

“Existing regulations stipulate that 50% of the funds have to be deployed in government securities. That apart, we will invest around Rs. 45,000 crore (450 billion) in equities, slightly more than the Rs 43,000 crore (Rs 430 billion) that we had put in last year,” Chairman D K Mehrotra said.

In the last financial year 2010-11, the life insurance behemoth had recorded a profit of Rs 170 billion by selling stocks, Mehrotra said.

The state-run insurance firm, which infused Rs 1.83 trillion in other securities in fiscal 2010-11, registered income to the tune of Rs 900 billion.

Besides, earlier September, media reports had said LIC is also expected to limit its equity investments to Rs 350-400 billion in 2011-12 from Rs 600 billion projected at the beginning of the year, due to slower growth in premium income.