LIC confident about cleaning up bad debt investments: MD

Ahead of its initial public offering Life Insurance Corp. (LIC) of India had said that it had mark-to-market losses of ₹6,028 crore

on its books relating to debt investments in certain pension and group schemes, which were to be accounted for in its income statement.

However, the insurer was confident of resolving the debt investments in time.

The Insurance Regulatory and Development Authority of India (IRDAI) has asked LIC to ensure that the value of the loss-making investments reflects in its income statement by 31 January 2023 .

“Many of these investments pertain to pension and group schemes.

Many of these investments are standard in our books and we have taken that up with the regulator and hence, the regulator has given us time.

We are in the process of disposing off these investments. We have made substantial progress.

Still, ₹5,000-6,000 crore remains and we are hopeful that we will be able to dispose these of,” LIC managing director Raj Kumar said.

“Some of the investments became other investments because of the covid impact as the companies were not able to declare profits or their ratings were downgraded

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