LIC posts five-fold Net Profit at Rs 13,428 crore

Sharp rise in earnings mainly because of change in accounting policy

By NewsOnRadar Bureau Last updated Jul 16, 2024

MUMBAI: Life Insurance Corporation of India (LIC), country’s largest insurer, on Wednesday announced a 466% rise in its standalone net profit to Rs 13,428 crore for the quarter ending March 2023 compared to Rs 2,372 crore a year ago.

Premium income plunged 8.3% year-on-year (YoY) to Rs 1.31 lakh crore for the quarted ending March 2023, while the first year premium during the fourth quarter stood at Rs 12,811 crore, compared to Rs 14,614 crore in the year-ago quarter, a decline of 12%. Net commission during the quarter rose 5% to Rs 8,428 crore from Rs 7,996 crore in the same quarter in previous fiscal, as per an exchange filing. The Board of Directors have recommended a dividend of Rs 3 per share translating to a dividend payout of Rs 1,897 crore.

“Our results demonstrate the resilience of our business, built in every nook and corner of the country, over a period of more than six decades. Our efforts towards enhancing the share of non par products in the overall product mix are bearing fruits. With the increase in profit, net VNB margin and IEV we are well positioned to continue our growth journey, in the service of the nation and its citizens,” said Siddhartha Mohanty, Chairperson, LIC, in a statement. “The regulatory initiatives towards Insurance for All by 2047 will present opportunities to grow for the sector and we intend to participate in that growth. As we move forward to grow our business further, we will endeavour to create superior value for all our stakeholders,” he added.

Net profit for the year ended March 31 was Rs 36,397 crore as compared to Rs 4,043 crore for the previous financial year. The net profit saw a sharp jump of 466% mainly due to change in accounting policy, under which it has transferred Rs 7,299 crore to shareholders’ account during the quarter.

The Indian embedded value (IEV) of the corporation has grown by 7.53% to Rs 5.82 lakh crore as on March 31 ,2023, from Rs 5.41 lakh crore in the same period last year. The profit for FY23 comprises an amount of Rs 27,241 crore (net of tax), which is pertaining to the accretion on the Available Solvency Margin, transferred from Non Par fund to shareholders account.