The national insurer LIC has expanded its annual surplus by 10.1 per cent to Rs 48,444.82 crore for fiscal 2018 and has paid Rs 2,430.19 crore as the government share. Life Insurance Corporation (LIC) has generated a total valuation surplus of Rs 48,444.82 crore for fiscal 2018, which is 10.1 per cent higher than what it had generated in the previous fiscal, the Corporation said in a statement Friday.
In fiscal 2017, the Corporation had paid Rs 2,206.70 crore to the government, which was had 15.8 per cent over fiscal 2016. In fiscal 2017, it had booked a surplus of Rs 44,134 crore, up 16.14 per cent over Rs 38,000 crore in the previous reporting year, when it had also paid an Rs 500-crore one-time bonus to the government.
The Corporation now manages assets worth over Rs 28.45 trillion, up from Rs 25.72 trillion a year ago and had an annual income of Rs 4.92 trillion in the year gone by, which was down from Rs 5.23 trillion in the previous year. In life insurance parlance, valuation surplus is akin to profit for companies and as per the LIC AC, it has to distribute 95 per cent of the surplus to the policyholders and the balance to the government, its shareholder.
Corporation chairman VK Sharma presented a cheque for the surplus amount to finance minister Arun Jaitley in the national capital Friday, said the statement. The 62-year-old corporation said its market share by a number of policies stood at 75.67 per cent for the year under review. The Corporation did not disclose the overall market share for the year, had stood at 71.07 per cent in fiscal 2017, up from 70.44 per cent in the previous year.
Of the total annual income of Rs 5.23 trillion, the first-year premium income stood at Rs 1.34 trillion, which is the highest in its history, taking the total asset base of the Corporation to Rs 28.45 trillion. The Corporation has settled as much as 2.66 crore claims worth Rs 1.11 trillion during the year gone by, the statement added.
(With inputs from agencies.)