Insurance behemoth Life Insurance Corporation of India (LIC) on Monday said its exposure to the Adani Group was less than 1% of the total assets under management (AUM) at book value.
“With the total AUM at more than ₹41.66 lakh crore as on September 30, 2022, the exposure in the Adani Group, as on date, is 0.975% of the AUM at book value,” LIC said in a statement. The insurer finds itself in the eye of the storm after U.S.-based short seller Hindenburg Research recently flagged concerns about the substantial debt of the Adani Group.
LIC’s said its total holding under equity and debt as on December 31 in the Adani group of companies was ₹35,917.31 crore. The total purchase value of equity, bought over the last many years, in the Adani group companies is ₹30,127 crore. The market value for the same, as at close of market hours on January 27, was ₹56,142 crore.
The amount invested in the Adani Group, over a period, stood at ₹36,474.78 crore as on date, the insurer said. The credit rating of all the Adani debt securities held by LIC are AA and above, which is in compliance with the IRDAI investment regulations as applicable to all life insurance companies, it said.
Stating that a robust procedure for valuation of its liabilities and determination of solvency margin is followed, in order to ensure financial soundness on a continuing basis, LIC said its available solvency margin, as of September 2022, was well above the target solvency level of 160%.
