Allaying the apprehensions of the general public and political parties over the LIC’s presumably high exposure to the Adani Group of companies, following the publication of an adverse report on the latter by the US-based short seller, Hindenburg, LIC Associations and Unions, said the policyholders’ money is safe in LIC.
Representatives of the Federation of LIC of India Class I Officers’ Association, National Federation of Insurance Field Workers of India, All India Insurance Employees Association and All India LIC Employees Federation, stated in a press release that 80% of the investments of LIC are made in secured instruments like government securities or bonds. Hardly 20% of the funds are made in equities, and, therefore, the funds invested by policyholders are absolutely safe.
The total investment in the Adani group companies is ₹36,474.78 crore, and the present market value stands at ₹56,142 crore. Thus, LIC has earned a notional profit of ₹20,000 crore on its investment in the Adani group. However, the profit is as notional as is the presumed loss.
Every year, LIC generates an investible surplus of about ₹4.5 lakh to ₹5 lakh crore. In the case of the Adani group, the total exposure is only about 7% of the total equity investments done.
The LIC has an unblemished track record of over six decades in mobilising resources, giving decent returns and absolute security to the deposits of policyholders while ensuring the progress of the nation as a whole.
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