LIC Q4 results: Net profit surges over five-fold to Rs 13,428 cr; insurer declares Rs 3 dividend
LIC's net premium income fell 8.3% to Rs 1.32 lakh crore in the March quarter
- May 24, 2023,
- Updated May 24, 2023 10:58 PM IST
State-owned Life Insurance Corporation of India on Wednesday posted over five-fold jump in fourth-quarter profit, as it moved nearly Rs 7,300 crore to a shareholders' fund to shore up its bottom line.
India's largest insurer posted a profit after tax of Rs 13,428 crore for the quarter ended March 31 as compared to Rs 2,372 crore a year earlier.
The state-owned firm said it transferred Rs 7,299 crore from its non-participating fund to the shareholders' fund for the quarter, bringing the total to Rs 27,241 crore for the fiscal year ended March 31.
However, the total income of the insurer during the March quarter declined to Rs 2,01,022 crore from Rs 2,15,487 crore in the same period of the previous fiscal, LIC said in a regulatory filing.
Reuters reported last year that the insurer was planning to transfer Rs 1.8 lakh crore from policy holders' funds into the fund, which is earmarked to pay dividends or issue bonus shares.
The company's net premium income fell 8.3% to Rs 1.32 lakh crore in the March quarter.
The solvency ratio - which measures an insurance company's cash flow in comparison to the amount it owes as total life cover - increased to 1.87% as of March 31, 2023, against 1.85% at the end of the preceding fiscal.
LIC also declared a final dividend of Rs 3 per share for the financial year ended March 31.
On Wednesday, shares of LIC closed up 0.6% ahead of the results. They have fallen 22% in the Jan-March quarter, and nearly 32% since listing in May 2022.
LIC's income from first-year premium came down to Rs 12,852 crore as against Rs 14,663 crore in the same quarter previous fiscal.
The income from renewal premiums in the reporting period rose to Rs 76,328 crore compared to Rs 71,473 crore a year ago, while the single premium decreased to Rs 43,252 crore from Rs 58,251 crore.
For the entire financial year 2022-23, LIC registered a multi-fold rise in net profit to Rs 35,997 crore from Rs 4,125 crore in the preceding financial year.
The surge in annual profit for FY23 was helped by a jump in the second quarter bottomline to Rs 15,952 crore. It was due to a transfer of Rs 15.03 lakh crore to shareholders' accounts at the end of September.
The insurer's gross non-performing assets (NPAs) moderated to 2.56% from 6.03% at the end of March 2022.
In absolute terms, it declined substantially to Rs 12,031 crore from Rs 27,087 crore at the end of the preceding financial year.
LIC brought down its net NPAs to nil level from 0.04% at the end of March 2022.
Shares of the LIC closed 0.61% higher at Rs 593.55 apiece on BSE.
Last year, the government raised Rs 20,557 crore by diluting its 3.5% stake in the LIC through the initial public offering (IPO), the country's biggest ever.
LIC shares were listed at a discount of 8.62% at Rs 867.20 apiece on BSE over the issue price of Rs 949 a share.
Investors have lost nearly Rs 2.5 lakh crore since the listing of shares.
The government sold over 22.13 crore shares or a 3.5% stake in LIC through the IPO. The price band of the issue was Rs 902-949 a share. However, shares were allocated to investors on May 12, 2022, at the upper end of the price band.
With inputs from agencies
State-owned Life Insurance Corporation of India on Wednesday posted over five-fold jump in fourth-quarter profit, as it moved nearly Rs 7,300 crore to a shareholders' fund to shore up its bottom line.
India's largest insurer posted a profit after tax of Rs 13,428 crore for the quarter ended March 31 as compared to Rs 2,372 crore a year earlier.
The state-owned firm said it transferred Rs 7,299 crore from its non-participating fund to the shareholders' fund for the quarter, bringing the total to Rs 27,241 crore for the fiscal year ended March 31.
However, the total income of the insurer during the March quarter declined to Rs 2,01,022 crore from Rs 2,15,487 crore in the same period of the previous fiscal, LIC said in a regulatory filing.
Reuters reported last year that the insurer was planning to transfer Rs 1.8 lakh crore from policy holders' funds into the fund, which is earmarked to pay dividends or issue bonus shares.
The company's net premium income fell 8.3% to Rs 1.32 lakh crore in the March quarter.
The solvency ratio - which measures an insurance company's cash flow in comparison to the amount it owes as total life cover - increased to 1.87% as of March 31, 2023, against 1.85% at the end of the preceding fiscal.
LIC also declared a final dividend of Rs 3 per share for the financial year ended March 31.
On Wednesday, shares of LIC closed up 0.6% ahead of the results. They have fallen 22% in the Jan-March quarter, and nearly 32% since listing in May 2022.
LIC's income from first-year premium came down to Rs 12,852 crore as against Rs 14,663 crore in the same quarter previous fiscal.
The income from renewal premiums in the reporting period rose to Rs 76,328 crore compared to Rs 71,473 crore a year ago, while the single premium decreased to Rs 43,252 crore from Rs 58,251 crore.
For the entire financial year 2022-23, LIC registered a multi-fold rise in net profit to Rs 35,997 crore from Rs 4,125 crore in the preceding financial year.
The surge in annual profit for FY23 was helped by a jump in the second quarter bottomline to Rs 15,952 crore. It was due to a transfer of Rs 15.03 lakh crore to shareholders' accounts at the end of September.
The insurer's gross non-performing assets (NPAs) moderated to 2.56% from 6.03% at the end of March 2022.
In absolute terms, it declined substantially to Rs 12,031 crore from Rs 27,087 crore at the end of the preceding financial year.
LIC brought down its net NPAs to nil level from 0.04% at the end of March 2022.
Shares of the LIC closed 0.61% higher at Rs 593.55 apiece on BSE.
Last year, the government raised Rs 20,557 crore by diluting its 3.5% stake in the LIC through the initial public offering (IPO), the country's biggest ever.
LIC shares were listed at a discount of 8.62% at Rs 867.20 apiece on BSE over the issue price of Rs 949 a share.
Investors have lost nearly Rs 2.5 lakh crore since the listing of shares.
The government sold over 22.13 crore shares or a 3.5% stake in LIC through the IPO. The price band of the issue was Rs 902-949 a share. However, shares were allocated to investors on May 12, 2022, at the upper end of the price band.
With inputs from agencies