Insurance companies invested Rs35,880 crore (US$8.1 billion) in government securities in the last fiscal year ended 31 March, 173% higher than the amount invested in 2006/07, according to data from the Reserve Bank of India (RBI).
The share of insurance companies in overall investment in the government securities market rose to 23% during 2007/08, more than double the 9% share during the previous financial year.
The decline in the stock market since late 2007 has prodded insurance companies into shifting their investment portfolio towards fixed income securities.
