Strategy shift at India's top insurer LIC aids government borrowing costs
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Life Insurance Corp of India (LIC), the country's largest insurer, has stepped up federal and state debt purchases to reduce capital volatility, according to sources and market participants, also helping lower government borrowing costs.
The shift, previously unreported, has helped states reduce costs by more than 40 basis points (bps) over the past 15 months.
"LIC has been increasing their investment into state debt," confirmed a senior official from the state-run insurer, requesting anonymity as they were not authorised to speak to media.
