LIC board approves Rs 25 crore investment in asset management arm

12 Dec 2023 , 10:03 AM

The Life Insurance Corporation of India (LIC) of India has received board clearance to invest Rs 25 crore in LIC Mutual Fund Asset Management Ltd on a preferential basis, the country’s largest insurance business stated in an exchange filing on December 11.

Launched in 1989, the fund house was named the sixth largest AMC in November 2009, with assets of roughly Rs 50,000 crore. However, by June 2023, its assets had been reduced to Rs 19,000 crore.

As of December 11, LIC owned 45% stake in the firm, with LIC Housing Finance owning 39.30%, GIC Housing Finance owning 11.70%, and Union Bank of India owning 4%.

LIC recorded a 50% drop in net profit to Rs 7,925 crore for the quarter ending September 30, 2023, from Rs 15,952 crore the previous year.

LIC’s net premium income declined 19% to Rs 1.07 lakh crore in the current quarter, from Rs 1.32 lakh crore the previous year. Its gross non-performing assets (GNPAs) were 2.43%, down from 5.60% in the previous year, while its net NPAs remained steady.

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