LIC’s investment policy not affected by specific stock moves: Chief Mohanty on Adani saga

Life Insurance Corporation of India’s investment policy is in place and specific stock movements will not affect the same, said Siddhartha Mohanty, chairperson of the country’s largest life insurer, clarifying on the recent movement in Adani Group stocks.

“We see the total portfolio growth in our basket..If that grows and we give decent return to all our investors, all our policyholders, then I think there should not be any concern,” Mohanty told ETNow in an interview.

Mohanty urged investors and policyholders to have confidence in the life insurer’s investment policy.


LIC was staring at potential losses on its investment in Adani group stocks after the rout triggered by US-based Hindenburg Research in late January. From over Rs 80,000 crore sometime in November 2022, the market value of LIC’s investment in Adani stocks dropped to about Rs 38,000 crore in February.

However, the recent recovery in shares of the Adani group companies has pushed the investment value above Rs 45,000 crore.
When asked if LIC increased its exposure to the group in the last quarter, all that Mohanty said was, ”That can be verified from a stock exchange.”

On Dividend Payout
LIC board on Wednesday recommended dividend payout of Rs 3 a share for the financial year ended March. When asked why the payout to shareholders was less despite strong cash balances, Mohanty said the payout was still double of what was paid in the prior year.

“We have to maintain our solvency..Other liabilities also have to be met, so all these things one has to take into account, then only one can understand…,” he said.

On Earnings Performance
LIC expects value of new business (VNB) margins to improve further in the coming years after the insurer managed to meet its 16% target at least 2 years prior to its guidance.

The company managed to achieve the margin because of the conscious efforts to change the product mix.
“Definitely there will be growth, 16.2% we achieved much before FY 25-26, so that is a good sign and in the coming years we will find there will be growth,” Mohanty said.
Besides VNB margins, LIC is also confident of improving its persistence ratio further.

“Last year, we made a lot of efforts so that our consistency goes up and it is competitive in the market. Going forward, definitely this effort will get a better result,” the chairperson said.

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