MUMBAI: Allaying fears about its investments in Adani Group, Life Insurance Corporation of India (LIC) on Monday said that its exposure in the conglomerate is less than 1 per cent of its total Asset Under Management (AUM) book value. The country’s largest insurer has registered strong gains from its investment in the group companies.
"The total purchase value of equity, purchased over the last many years, under all the Adani group companies is Rs 30,127 crore and the market value for the same as at close of market hours on January 27, 2023, was Rs 56,142 crore," LIC said in a statement.
"The total Assets Under Management by LIC are over Rs 41.66 lakh crore as of September 30, 2022. Therefore, LIC's exposure in the Adani group, as of date, is 0.975 per cent of LIC's Total AUM at book value," it added.
LIC's total holding under equity and debt is Rs 35,917.31 crore as of Dec. 31, 2022, under the Adani Group of companies. The total amount invested under Adani Group amounts to Rs 36,474.78 crore as of date.
"These investments have however been made over a period. Further, it may be appreciated that the credit rating of all of the Adani debt securities held by LIC are AA and above which is in compliance with the IRDAI investment regulations as applicable to all the Life Insurance companies,” said the insurer.
LIC owned a 4.23 per cent stake in the flagship Adani Enterprises as of end-December, over 9 per cent in Adani Ports and Special Economic Zone, nearly 6 per cent in Adani Total Gas and 3.65 per cent in Adani Transmission, according to data from the Bombay Stock Exchange.
LIC, the 66-year-old institution of repute and standing, follows a strict investment framework compliant with applicable guidelines and regulations.
"While the market value of assets can change in either direction, LIC invests from a long-term perspective and based on detailed due diligence. LIC follows a robust procedure for valuation of its liabilities and determination of solvency margin in order to ensure its financial soundness on a continued basis," said the insurer in the statement.