Life Insurance Corporation of India (LIC) is reviewing its vast real estate portfolio to improve returns and may explore setting up a separate subsidiary to manage the assets more efficiently, PTI reported.LIC’s real estate holdings, accumulated over nearly seven decades, are conservatively estimated at more than Rs 60,000 crore.“We have substantial real estate, both inherited and purchased over the period of 70 years that we have been operating. It is used both for our own use and as well as investment which earns returns for us,” LIC CEO and MD R Doraiswamy told PTI in an interview.“We look at each piece of real estate as an investment. As part of the asset, we expect each property to contribute towards the returns for the policyholders as well as shareholders,” he said.Doraiswamy said LIC has initiated a detailed review of its property portfolio to assess the returns and yields generated by these assets and identify areas for optimisation.The move is aimed at improving returns for policyholders while strengthening LIC’s profitability.Asked whether LIC has fixed any target for FY27, Doraiswamy said the focus was on improving current returns rather than achieving a specific number.“No such targets as such…we need to improve from whatever it is currently. That is what we are looking at,” he said.He added that self-occupied properties also help strengthen LIC’s institutional image and that improving the ambience and infrastructure of branches and owned buildings has become a focus area.At the same time, LIC is evaluating leased properties to ensure they generate appropriate revenue returns.When asked whether LIC would consider creating a separate subsidiary for managing real estate assets, Doraiswamy said, “All options are open before us…all options will be examined and we will take it forward in the days to come.”Currently, LIC’s estates department manages immovable properties, while a separate engineering wing handles maintenance and construction work.Doraiswamy also said LIC remains prepared for any future dilution of the government’s stake in the insurer.“We have been prepared right from day one. When we started preparing for the IPO, we were prepared for this kind of subsequent actions as well. So the call is taken by the government,” he said.LIC was listed in 2022 through one of India’s biggest IPOs, with the government raising around Rs 21,000 crore by diluting a 3.5 per cent stake.The LIC chief said the government remains focused on meeting listing norms requiring a minimum public shareholding threshold, though market conditions will determine the timing of future stake sales.He also highlighted shareholder rewards announced by LIC after listing, including a 1:1 bonus issue and a higher dividend payout.Last week, LIC reported a 23 per cent rise in net profit to Rs 23,420 crore in the March quarter, the highest quarterly profit posted by any financial services company in India.