Life Insurance Corporation (LIC) on Wednesday reported over 5-fold jump in consolidated net profit to Rs 13,191 crore for the March 2023 quarter, said the company’s regulatory filing.
LIC reported a multi-fold increase in net profit to Rs 35,997 crore for the financial year 2022-23.
The insurer had posted a profit of Rs 2,409 crore in the same quarter a year ago.
However, the insurer’s total income declined to Rs 2,01,022 crore during the March quarter from Rs 2,15,487 crore in the same period last fiscal, LIC said in a regulatory filing.
LIC’s income from first year premium also declined to Rs 12,852 crore as against Rs 14,663 crore in the same quarter last fiscal.
Income from renewal premium increased to Rs 76,328 crore in the period under review as compared to Rs 71,473 crore a year ago, while single premium declined to Rs 43,252 crore from Rs 58,251 crore.
For the full financial year 2022-23, LIC reported an increase in net profit to Rs 35,997 crore from Rs 4,125 crore in the previous financial year.
The rise in annual profit for FY23 was helped by a jump in Q2 low of Rs 15,952 crore. This led to a transfer of Rs 15.03 lakh crore to shareholders’ accounts at the end of September.
LIC’s board has recommended a final dividend of Rs 3 per equity share with a face value of Rs 10 for the year ending March 31, 2023.
The solvency ratio – which measures an insurer’s cash flows compared to the amount outstanding in the form of total life cover – increased to 1.87 per cent by March 31, 2023, from 1.85 per cent at the end of the previous financial year.
The gross non-performing assets (NPAs) of the insurer declined to 2.56 per cent from 6.03 per cent at the end of March 2022.
In absolute terms, it declined to Rs 12,031 crore from Rs 27,087 crore at the end of the last financial year.
LIC aims to bring down its net NPAs from 0.04 per cent to zero level at the end of March 2022.
Shares of LIC closed 0.61 per cent higher at Rs 593.55 on the BSE.
Last year, the government raised Rs 20,557 crore by diluting its 3.5 per cent stake in LIC through an initial public offering (IPO), the country’s largest ever.
Shares of LIC listed at Rs 867.20 on the BSE at a discount of 8.62 per cent to the issue price of Rs 949 per share.
Nearly Rs 2.5 lakh crore of investors have sunk since the listing of the shares.
The government sold 22.13 crore shares or 3.5 per cent stake in LIC through the IPO. The price band of the issue was Rs 902-949 per share. However, the shares were allotted to investors on May 12, 2022, at the upper end of the price band.
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