Insurers Slash Sovereign Bond Holdings, Boost Equity to Rs 16.6 Lakh Crore

• Indian insurers cut sovereign bond share to 59.7% from 61.7%, despite rising government borrowings.
• Exposure to equity and mutual funds surged to Rs 16.6 lakh crore from Rs 14.3 lakh crore.
• Corporate bond holdings increased to Rs 11.6 lakh crore, now 15.6% of investment portfolios.
• The shift signals a move towards higher-yielding assets, as demand for government securities softens.
• Corporate debt market expanded, with NBFCs driving private placements and fixed coupons dominating.

Why It Matters: Insurers are shifting investments from government bonds to higher-yielding equities and corporate debt.