The Life Insurance Corporation of India has invested over Rs 22,200 crore (Rs 222 billion) in central government securities and around Rs 4,800 crore (Rs 48 billion) in state government securities till August this fiscal.

Together, this constitutes 90 per cent of LIC's total investment of Rs 30,000 crore (Rs 300 billion) to date. LIC expects to invest over Rs 60,000 crore (Rs 600 billion) this fiscal.

Also, in the current stock market rally, LIC has booked profit to the tune of Rs 1,200 crore (Rs 12 billion) on its equity portfolio, said LIC managing director R N Bharadwaj.

This included bank stocks such as State Bank of India, Bank of India, Bank of Baroda as well as a number of new generation private sector banks.

The market value of LIC's equity portfolio has risen by almost 50 per cent to Rs 31,000 crore (Rs 310 billion) as on July 31, 2003, against Rs 21,000 crore (Rs 210 billion) at the end of March 2003, said sources.

LIC chairman S B Mathur said: "During January-March 2003, when foreign institutional investors were not in the market, LIC contributed almost 10 per cent of the total deliverable turnover of the exchanges."

LIC, which had invested heavily in the markets when the Sensex was ruling around 2,900-3000, has been a net seller during the fiscal.

"We, like any prudent investor, are exiting by making profit without disturbing the market sentiment," said Bharadwaj.

LIC has also used the rising markets to exit from illiquid and less frequently traded shares.

Meanwhile, the corporation sold Rs 2,200 crore (Rs 22 billion) of government securities under the Centre's buyback auction for high cost illiquid securities, said Mathur.

Mathur and Bharadwaj were speaking in Mumbai today at the launch of the Jeevan Shree-I plan, following the reduction in the guaranteed return in Jeevan Shree.

Celebrating LIC's 47th anniversary, the corporation will henceforth offer a guaranteed addition of Rs 50 per thousand sum assured for the first five years under the revised Jeevan Shree.

"In the reintroduction of the endowment plan, we have decreased the guaranteed returns in keeping with market realities," said Mathur.

Meanwhile, LIC has shown a 24.16 per cent growth in first premium income as on August 15, 2003, and mopped up Rs 1,166.3 crore (Rs 11.663 billion) against the sale of 51.11 lakh individual insurance policies.

The sum assured has increased by over 30 per cent to Rs 35,341.9 crore (Rs 353.419 billion).

"If the tax issue stabilises, then growth rates will pick up," said Mathur, as he commented on the drop in sales on the back of less single premium policies sold.