LIC's market share rises to 76.92 per cent in 2010-11

The market share of state-run Life Insurance Corporation of India (LIC), in terms of number of policies sold in the country, stood at 76.92 per cent in 2010-11 against 73.02 per cent in the previous financial year.

LIC's share in new policy sales (first year premium) also stood higher at 68.70 per cent in 2010-11 against 64.86 per cent in 2009-10, minister of state for finance Namo Narain Meena stated in the Lok Sabha in a written reply.

The market share of LIC has been increasing consistently during the last two years despite an increasing number of private sector life insurers entering into the business, the minister added.

The public sector insurance giant, meanwhile, has helped policymakers contain the stock market mayhem that followed the downgrading of US sovereign rating and developments in Europe.

The losses in the stock market would have been steeper but for the huge purchases by LIC and other domestic financial institutions.

Domestic institutional investors had bought stocks worth over Rs40,000 crore on Wednesday, according to data from the National Stock Exchange. The institutions had bought stocks worth around Rs15,000 crore on Tuesday and stocks worth around Rs13,000 on Monday.

And, on Friday, when foreign investors started selling stocks on fears of a US credit downgrade, domestic institutions are reported to have invested Rs15,000 crore in the Indian market.