LIC plans overseas business expansion

New Delhi: Country's largest life insurer Life Insurance Corporation is exploring new territories, including Singapore, to expand its overseas business.

'A new joint venture company namely Saudi Indian Company for co-operative insurance has been formed in Saudi Arabia. LIC is also exploring opportunities for expansion in new territories, including Asian countries like Singapore,' Finance Minister P Chidambaram told Rajya Sabha in a written reply.

The Saudi joint venture has received certificate of registration and is likely to commence its activities soon after receipt of operational license from the local regulator, he said.

The first year premium income of LIC's foreign operations for 2006-07 stood at 108.67 crore.

In another reply Minister of State for Finance P K Bansal said, during 2006-07 LIC made an investment of Rs 17,297.18 crore in the infrastructure development project

Bansal said as on February 29, 2008 LIC's market share stood at 73.05 per cent and it registered 63.53 per cent rise in the first year premium collection. The sale of the company's conventional policies is much higher than total sales (both non-ULIP, conventional and ULIP) of all private insurers put together, he said.

During 2006-07, the company posted a profit of Rs 773.6 crore, against Rs 631.5 crore a year-ago.