LIC Aims to Enhance Returns from Real Estate Properties
The Life Insurance Corporation (LIC) is looking to improve returns from its vast real estate portfolio, which is conservatively estimated at over Rs 60,000 crore.
Comprehensive Review of Real Estate Portfolio
As part of its efforts, LIC has initiated a comprehensive review of its real estate portfolio to assess the returns and yields it generates, and to identify opportunities for further optimisation and improvement.
- Enhance returns for policyholders
- Strengthen the organisation's overall profitability
- Improve the ambience and overall environment of its branches and owned buildings
- Ensure leased properties generate appropriate revenue returns
Exploring Options for Greater Efficiency
LIC is also exploring the option of setting up a separate subsidiary to achieve greater efficiency in managing its vast assets.
"All options are open before us...all options will be examined and we will take it forward in the days to come," said LIC CEO and MD R Doraiswamy.
Management of Real Estate Portfolio
At present, the immoveable properties of LIC are being managed by the estates department while an engineering wing takes care of the maintenance, building, and constructions.
"All these are part of our team and all of them are contributing for the returns of the organisation," added Doraiswamy.
Prepared for Further Stake Dilution
LIC is also prepared for further dilution of stake by the Centre, with Doraiswamy stating that the company has been prepared right from day one.
"We have been prepared right from day one. When we started preparing for the IPO, we were prepared for this kind of subsequent actions as well. So the call is taken by the government," said Doraiswamy.
Post-IPO Activity
Post-IPO, LIC has done quite a good amount of activity in rewarding the shareholders, with a 1:1 bonus and a 67 per cent higher dividend declared in the last quarter.
The board of LIC recommended a final dividend of Rs 10 per equity share of Rs 10 each, subject to approval of shareholders.
Record Net Profit in Q4
LIC posted a 23 per cent increase in net profit to Rs 23,420 crore in the March quarter, the highest by any financial services firm in the country.
Key Statistics:- Rs 60,000 crore: conservatively estimated value of LIC's real estate portfolio
- Rs 21,000 crore: amount raised by the government through LIC's IPO
- 10 per cent or 15 per cent: public float required under listing requirements
- Rs 23,420 crore: net profit in the March quarter