LIC weighs mega asset sale to raise up to $7 billion: report

Life Insurance Corp. of India (LIC), India’s biggest insurer as well as stock market investor, is looking to put on the block some of its prime real estate across cities to raise up to $7 billion, Mint reported, citing two unidentified officials aware of the discussions.

Some of the insurance firm’s prime real estate includes the Jeevan Bharti building in New Delhi’s Connaught Place, LIC building in Chittaranjan Avenue in Kolkata and building housing the Asiatic Society and Akbarally’s in Mumbai.

LIC owns assets worth more than ₹51 trillion, and at the time of their last valuation, the value of its real estate was pegged at a conservative ₹60,000 crore, the report said, citing the two people mentioned above.

The insurer’s asset sale plan has gathered momentum following a government push to monetize properties under public sector units.

Only a piece-by-piece auction of the properties will eventually lead to price discovery, the report said, while adding that this will happen only if LIC Act and other laws are tweaked.

The insurer posted a net profit of ₹40,676 crore in fiscal 2024, up from ₹36,397 crore in the previous year on robust renewal premiums, better returns from its investments and growth in value of new business. LIC’s premium income grew marginally by 0.22% to ₹4.75 trillion in fiscal 2024. The insurer announced a dividend of ₹6 per share for FY24, and if the real estate sale goes through, it may lift profits and dividend

LIC is the third most prominent landholder in India, after defense and railways.

Shares of LIC were down 1.02% on BSE on Tuesday.

LIC continues to lead in the Indian life insurance business as measured by premium in the first year with an overall market share of 58.87%, data from industry regulator Insurance Regulatory and Development Authority of India showed .

For the fiscal year to March 2024, LIC held a market share of 38.44% in individual life insurance policies and 72.30% in group insurance policies.