LIC turns to Wall Street banks to hedge risks

Plan In Motion

- PRATIGYA VAJPAYEE & SAIKAT DAS

LIFE INSURANCE CORPORATION is working with some of Wall Street's largest banks to hedge its liabilities, according to people familiar with the matter.

The nation's largest insurer has entered into $1 billion worth of bond forward rate agreements with banks including JPMorgan Chase & Co and Bank of America over the past two months, the people said, asking not to be identified as they are not authorized to speak publicly.