LIC Eyes Higher Returns From ₹60,000 Crore Real Estate Portfolio

State-owned Life Insurance Corporation of India is reviewing its vast real estate portfolio worth over ₹60,000 crore as it looks to improve returns from its property assets and unlock better value for policyholders and shareholders. The insurer is also evaluating the possibility of creating a separate subsidiary to manage these assets more efficiently.

LIC Begins Review Of Vast Property Holdings

LIC Chief Executive Officer and Managing Director R Doraiswamy said the corporation has substantial real estate holdings accumulated over nearly 70 years of operations. These include both inherited properties and assets acquired over time, spread across India, serving both operational and investment purposes.

According to Doraiswamy, LIC has started a detailed review of the returns and yields generated by these properties. The exercise is aimed at identifying opportunities to improve monetisation, enhance rental income and optimise the use of its real estate assets. He said each property is viewed as an investment and is expected to contribute meaningfully to returns generated for policyholders as well as shareholders.

Separate Property Subsidiary Under Consideration

While LIC has not announced a formal target for FY27, management indicated that the focus is on improving yields from current levels. “All options are open,” Doraiswamy said when asked whether LIC could spin off its real estate operations into a dedicated subsidiary. Such a structure could allow more specialised management of leasing, redevelopment, maintenance and commercial utilisation of the insurer’s properties.

Currently, LIC’s immovable properties are handled by its estates department, while an engineering wing manages construction, building upkeep and maintenance. The insurer is also reviewing leased assets to ensure they generate appropriate revenue returns while continuing to improve self-occupied buildings to strengthen brand presence and customer experience.

The move comes as LIC continues to sharpen capital efficiency across businesses. In its latest earnings, the insurer reported a 23% year-on-year rise in net profit to ₹23,420 crore, underlining strong profitability even as it explores better monetisation of non-core assets such as real estate.

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LIC’s real estate review is being closely watched by the market, given the scale of its land bank and the potential for higher recurring income from one of India’s largest institutional property portfolios.

Sources:

Economic Times

Moneycontrol