LIC Q1 results: Net profit surges fourteen-fold to Rs 9,544 cr
LIC's solvency ratio improved marginally to 1.89 compared with 1.88 last year and its net premium income was mostly flat at Rs 98,363 crore
- Aug 10, 2023,
- Updated Aug 10, 2023 9:24 PM IST
Life Insurance Corporation of India on Thursday reported a near fourteen-fold surge in first-quarter profit, as it moved money to a shareholders' fund to shore up its bottom-line.
The company posted a profit after tax of Rs 9,544 crore for the quarter ended June 30 as compared to Rs 683 crore a year ago.
On Thursday, LIC's scrip on BSE closed 0.4% lower at Rs 641.6.
Net premium income was mostly flat at Rs 98,363 crore, the company said in an exchange filing.
The state-owned insurer has been transferring money from its non-participating fund to the shareholders' fund to boost its profitability.
Reuters reported last year that the insurer was planning to transfer Rs 1.8 lakh crore from policyholders' funds into a fund earmarked to pay dividends or issue bonus shares.
Its solvency ratio, the measure of an insurer's ability to meet its long-term debt obligations, improved marginally to 1.89 compared with 1.88 last year.
The company's annualised premium equivalent for non-participating products, where the insurer does not share profits or surplus with the policy holder, rose 21.6%.
LIC, largely reliant on an army of sales agents, said policy sales dropped 12.6% in the quarter.
The life insurer raised the minimum ticket size of policies and focused more on margin oriented non-participating products, LIC Chairperson Siddhartha Mohanty said on a media call.
Net income from investments during the quarter rose to Rs 90,309 crore as compared to Rs 69,571 crore in the April-June period of 2022-23.
On the asset quality front, gross non-performing assets ratio eased to 2.48% from 5.84% in the same period a year ago.
The total income increased to Rs 1,88,749 crore for the June quarter as against Rs 1,68,881 crore in the year-ago period, LIC said in a regulatory filing.
However, the first-year premium for the reporting quarter came down to Rs 6,811 crore as against Rs 7,429 crore in the year-ago period, it said.
With inputs from Reuters
Life Insurance Corporation of India on Thursday reported a near fourteen-fold surge in first-quarter profit, as it moved money to a shareholders' fund to shore up its bottom-line.
The company posted a profit after tax of Rs 9,544 crore for the quarter ended June 30 as compared to Rs 683 crore a year ago.
On Thursday, LIC's scrip on BSE closed 0.4% lower at Rs 641.6.
Net premium income was mostly flat at Rs 98,363 crore, the company said in an exchange filing.
The state-owned insurer has been transferring money from its non-participating fund to the shareholders' fund to boost its profitability.
Reuters reported last year that the insurer was planning to transfer Rs 1.8 lakh crore from policyholders' funds into a fund earmarked to pay dividends or issue bonus shares.
Its solvency ratio, the measure of an insurer's ability to meet its long-term debt obligations, improved marginally to 1.89 compared with 1.88 last year.
The company's annualised premium equivalent for non-participating products, where the insurer does not share profits or surplus with the policy holder, rose 21.6%.
LIC, largely reliant on an army of sales agents, said policy sales dropped 12.6% in the quarter.
The life insurer raised the minimum ticket size of policies and focused more on margin oriented non-participating products, LIC Chairperson Siddhartha Mohanty said on a media call.
Net income from investments during the quarter rose to Rs 90,309 crore as compared to Rs 69,571 crore in the April-June period of 2022-23.
On the asset quality front, gross non-performing assets ratio eased to 2.48% from 5.84% in the same period a year ago.
The total income increased to Rs 1,88,749 crore for the June quarter as against Rs 1,68,881 crore in the year-ago period, LIC said in a regulatory filing.
However, the first-year premium for the reporting quarter came down to Rs 6,811 crore as against Rs 7,429 crore in the year-ago period, it said.
With inputs from Reuters