The profit is a 66.3% jump from the ₹15,578 crore gains in the year-ago period and more than 80% of its full-year target of ₹32,000 crore which, if realized, will be the insurer’s highest earnings from equity investments in its 64-year history. Last fiscal, LIC had booked a profit of ₹25,625 crore from stock sales.

The bumper gains have been helped by a resurgent stock market. The BSE’s benchmark Sensex gained 56.4% since 1 April.

An LIC spokesperson said the insurer is a contrarian investor and focuses on long-term growth. “We are basically buyers when the market sells, and we are sellers when the market buys. This year has been exceptionally good. Along with good buying, leading to an increase in our equity portfolio, we have booked record profits in equity," the spokesperson said in response to an emailed query.

“The profit booked up to 30 November is the highest ever for this period in LIC’s history," said the LIC spokesperson.

Regulatory data shows LIC’s combined new business from individual and group single premium policies rose 22.4% to ₹95,840 crore in April-November. This, along with record profits from share sales, could increase interest in the LIC IPO.

According to Mint research, in the September quarter, the top 15 firms in which LIC cut stakes the most include ITC, NTPC, ICICI Bank, Nestle India, Britannia, ABB and Dr Reddy’s. LIC has sold shares worth ₹13,710 crore in these firms in April-September.

LIC’s profits primarily come from sale of shares in the insurer’s large, non-linked portfolio, which includes traditional life insurance policies.

LIC’s record profits essentially mean: one, the insurer will be able to pay better bonuses and returns; two, it expands LIC’s investible surplus, which can provide vital support to stock markets at an uncertain time; and, three, the ability to generate such profits may attract new customers.

“For fiscal 2021, our target for equity purchase is to cross ₹77,000 crore, depending on market conditions," said the LIC spokesperson.

Last fiscal, LIC bought shares worth ₹61,590.02 crore. By 30 November, with four more months left in the fiscal, LIC had already purchased shares worth ₹60,574.94 crore, 51% more than ₹40,098.83 crore in the same period last year.

“In the first few months after covid hit, sales were sluggish. Most LIC sales are generated via agency channel, which has at least 1.2 million agents. The agents then pushed sales through online medium, and after June, premium income flow jumped. On an average basis, new business premium is growing 10.5%, and renewal income is by 11% year-on-year in April-November," said one of the three people cited earlier, all of whom spoke on condition of anonymity.