LIC sees higher returns from real estate – The Times of India

MUMBAI: Life Insurance Corporation will soon take steps to boost returns on its real estate assets, which have a book value of Rs 16,000 crore and a market value of over Rs 45,000 crore after revaluation. Officials said that while real estate typically yields 3-4%, capital gains are much higher. The company has also shelved plans to acquire a strategic stake in a health insurer.Addressing a press conference after the board meeting, the company’s MD & CEO R Doraiswamy said LIC has decided to slow down on its previously announced plan to enter the health insurance sector, which was announced by its predecessor. “There was a plan to enter as a strategic investor in a standalone health insurer to understand the market. But while evaluating the options, we found that this is not immediately necessary. So we are not moving quickly. As soon as we find a suitable opportunity, we will look at it,” he said.

Maximizing returns

Officials said LIC is reviewing its entire real estate portfolio to find ways to improve yields. It indicated that selling real estate is not the immediate priority and that the focus is on strengthening monetization of the assets. Officials said the insurer is also open to exploring new structures, including options such as Reit-like models, although no decision has been made yet.In her Budget speech, Finance Minister Nirmala Sitharaman said the government would accelerate the recycling of significant real estate assets of central public sector companies by setting up dedicated Reits.For the quarter ended December 2025, the company reported a standalone net profit of Rs 12,958 crore, up 17.2% from Rs 11,056 crore in the corresponding period a year ago.Pre-tax profit rose 16.7% from Rs 11,056 crore to Rs 12,897 crore, according to the insurer’s reviewed standalone financial results. Net premium income rose 17.5% from Rs 1,06,891 crore to Rs 1,25,613 crore, supported by growth in new business and single premium products.The company has not yet resorted to selling a stake in NSE, where it is a major shareholder, in the upcoming IPO.