LIC's assets soar to over $616 bn, nearly double the size of Pak economy; surpass GDP of Nepal, Sri Lanka

After a market surge ahead of the Lok Sabha election results, the total assets managed by Life Insurance Corporation (LIC) have now exceeded Rs 50 lakh crore ($614.21 billion), about double the amount of Pakistan's GDP.

In an exchange filing, the massive state-owned insurance company revealed its Q4 FY24 financial results on May 27.

As of the end of March, LIC's assets under management (AUM) had increased by 16.48% year over year (YoY) to Rs 51,21,887 crore ($616 billion), up from Rs 43,97,205 crore at the end of the previous fiscal year FY23, according to the stock exchange filing.

In the meantime, the International Monetary Fund (IMF) estimates that Pakistan's GDP is around $338.24 billion. LIC has an AUM (assets under management) of $616 billion, which is nearly twice as much as the GDP of Pakistan.

Additionally, the AMU of LIC exceeds the GDPs of Pakistan, Nepal, and Sri Lanka put together. It also exceeds the GDPs of developed nations like Singapore, Hong Kong, Finland, Denmark, and others.

Pakistan has been experiencing financial difficulties anda national debt default was just barely avoided. The IMF has expressed worries about Pakistan's capacity to pay back its loans, pointing to societal unrest and political unpredictability as possible obstacles to stable economic conditions.

With a total premium income of Rs 4,75,070 crore, LIC declared a profit of Rs 40,676 crore for FY24. During the fiscal year, the company also gave participating policyholders a bonus of Rs 52,955.87 crore.

LIC, which holds a commanding market share of around 59% in the Indian life insurance industry, is now aggressively investigating acquisition options as part of its development strategy into the health insurance market.

LIC shares, which are presently valued at Rs 6.46 lakh crore, have increased by around 52% over the last six months, ranking them as the seventh-largest company by market capitalization. Through the President of India, the Indian government owns 96.5% of LIC.

(With inputs from agencies)