Life Insurance Corporation (LIC) on Monday reported an 18 per cent decline in its standalone net profit at Rs 2,371.55 crore as against Rs 2,893.48 crore in the same quarter last year. Its net premium income stood at Rs 1.43 lakh crore during January-March 2022, an increase of 18 per cent over Rs 1.21 lakh crore in the year-ago period.
This is LIC’s first financial result after listing. The company’s first year gross premium stood at Rs 14,614.25 crore in the January-March 2022 quarter, as against Rs 10,957.64 crore a year ago. According to a BSE filing, its renewal premium stood at Rs 71,157.89 crore as against Rs 67,455.95 crore in the year-ago period.
LIC has declared a dividend of Rs 1.50 per share for the financial year 2021-22. “The Board of Directors of the Corporation has recommended a dividend of Rs 1.50 per equity share with a face value of Rs 1.50 each for the year ended March 31, 2022, subject to the approval of the shareholders at the AGM (Annual General Meeting),” state the company, said in a filing on Monday.
On a consolidated basis, LIC’s net profit during the March 2022 quarter declined by 17.41 per cent to Rs 2,408.39 crore in the March 2022 quarter as against Rs 2,917.33 crore in the corresponding quarter of the previous year. Its net premium income stood at Rs 1.44 lakh crore during January-March 2022, up from Rs 1.22 lakh crore in the year-ago period.
Its solvency ratio stood at 1.85 in the fourth quarter of FY 2021-22, as against 1.77 in the same quarter a year ago. LIC’s 13-month continuity ratio stood at 69.24 per cent in the March 2022 quarter, up from 73.94 per cent a year ago. Similarly, the ratio for the 25th month was 68.23 percent versus 62.73 percent and the ratio for the 61st month was 55.61 percent as against 54.43 percent.
For the full financial year, LIC’s net profit for 2021-22 stood at Rs 4,043.12 crore, up 39.4 per cent as compared to Rs 2,900.56 crore in the previous fiscal.
Earlier this month, Life Insurance Corporation (LIC) released its initial public offering (IPO), which received a good response from the participants as it got subscribed 2.95 times. The bids received were 47.83 crores against the offer size of 16.21 crores. The price band of LIC IPO was fixed at Rs 902-949 per share and the company offered a discount of Rs 60 per share for its policyholders and Rs 45 for retail investors and LIC employees.
However, the state-owned company saw its first listing on May 17 at a discount on the stock exchanges, and its market capitalization (m-cap) fell by nearly Rs 47,000 crore to Rs 5.53 lakh crore during the same day was compared. Its issue price is over Rs 6 lakh crore at Rs 949 per share.
On Monday, LIC’s stock closed at Rs 837.75, up 16.15 points or 1.97 per cent on the BSE. The current share price is down more than 15 percent from IPO issue price.
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