LIC Clarifies Its Adani Group Holdings Amid Concerns Over High Exposure 

As Adani Group companies continue to be adversely impacted by the Hindenburg report that came out last week, Life Insurance Corporation of India (LIC) released a statement on Monday to clarify its exposure in Adani Group across equity and debt segments. 

Shares of Adani companies have been dropping since last Wednesday and LIC had come under the scanner since the insurer apparently has very large exposure to the conglomerate led by Gautam Adani. In its statement, LIC clarified, “LIC's total holding under equity and debt is Rs. 35,917.31 Crores as on 31.12.2022 under Adani group of companies.” 

The insurer further elaborated, “The total Assets Under Management by LIC are over Rs. 41.66 lakh crore as at September 30, 2022. Therefore, LIC's exposure in the Adani group, as on date, is 0.975% of LIC's Total AUM at book value.” 

There were concerns around LIC’s holdings in Adani Group since the state-backed insurer is the largest institutional investor in the country. Most domestic institutional investors have stayed away from investing in Adani companies or have reduced their holdings, while LIC has continually lapped up more stake in Adani companies, including as an anchor investor in the ongoing Adani Enterprises FPO. 

In its statement, the insurer also assured, “LIC follows a robust procedure for valuation of its liabilities and determination of solvency margin in order to ensure its financial soundness on continued basis. The available solvency margin of LIC as at September 2022 was well above the target solvency level of 160%.”