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• Life Insurance Corporation of India is reviewing its real estate portfolio and evaluating the possibility of setting up a separate subsidiary for property management.
• The insurer’s real estate holdings are conservatively estimated at more than INR 60,000 crore and include both self-occupied and investment properties accumulated over seven decades.
• LIC management said the review is aimed at improving yields, optimising asset utilisation and strengthening returns for policyholders and shareholders.
• The corporation is also assessing leased assets, branch infrastructure upgrades and operational efficiency across its property portfolio.
• The move comes as LIC reported a rise in profitability during FY26 and seeks to improve long-term monetisation of its non-core assets.
Life Insurance Corporation of India is reviewing its extensive real estate portfolio and exploring the possibility of creating a separate subsidiary to manage property assets more efficiently as the state-owned insurer looks to improve returns from its large land and building holdings across the country. Advertisement
LIC Chief Executive Officer and Managing Director Siddhartha Mohanty’s successor, R Doraiswamy, said in the past week that the insurer had initiated a detailed assessment of its real estate assets to evaluate existing yields and identify opportunities for better monetisation and operational efficiency. The insurer’s immovable assets are conservatively estimated at more than INR 60,000 crore, comprising both inherited and acquired properties accumulated over nearly 70 years of operations.
The portfolio includes office buildings, branch premises, leased commercial properties and land parcels located across major Indian cities. LIC stated that each property was being treated as an investment asset expected to contribute towards returns for both policyholders and shareholders. The insurer added that the review exercise was intended to improve profitability while ensuring better utilisation of existing real estate resources.
Doraiswamy indicated that all structural options were being examined, including the formation of a dedicated subsidiary focused on real estate management. At present, LIC’s estates department manages immovable assets while a separate engineering division oversees maintenance, construction and infrastructure-related activities. The corporation said a specialised structure could help improve administrative efficiency and streamline management of its geographically dispersed holdings.
The insurer also stated that self-occupied properties play a role beyond financial returns, particularly in maintaining institutional presence and branch infrastructure standards. As part of the ongoing review, LIC is evaluating improvements to the ambience and operational environment of its owned buildings and branch offices. Simultaneously, leased properties are being assessed to ensure they generate adequate rental and commercial returns.
LIC has historically been among the country’s largest institutional property owners, with assets spread across metropolitan centres and tier-II cities. Market estimates cited in previous industry reports have valued portions of its real estate portfolio significantly above book value due to appreciation in land prices over the years. Earlier reports had suggested that several of LIC’s commercial assets were yielding relatively modest annual returns despite strong capital value appreciation.
The review comes alongside improved financial performance for the insurer. LIC recently reported a 23% increase in standalone net profit for the March quarter of FY26, supported by stronger investment income and operational performance. The corporation, however, clarified that no specific return target had yet been fixed for the real estate optimisation exercise, though management acknowledged the need to improve yields from current levels
Source - PTI
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