Life Insurance Corporation of India (LIC) on Friday reported nearly 232 times year-on-year (YoY) growth in standalone net profit at Rs 682.88 crore for the quarter ended June 30. It had posted a standalone profit of Rs 2.94 crore in the corresponding quarter last year. On the other hand, the net premium income of LIC increased by 20.35 per cent YoY to Rs 98,351.76 crore.
Other income of the insurance behemoth stood at Rs 160.09 crore in Q1FY23 over Rs 145.47 crore in Q1FY22. Transfer of funds from shareholders’ accounts stood at Rs 799.24 crore during the quarter under review.
“The marketing activity picked up the pace, overall business momentum was strong for LIC and as a result, the overall market share by First Year Premium Income (as per IRDAI) increased to 65.42 per cent for the quarter ended June 30 as compared to full year market share of 63.25 per cent for FY 2021-22. The market share by first year premium income for the quarter ended June 30, 2021 was 67.52 per cent,” LIC said in a release.
The country’s biggest institutional investor announced its results post market hour. Earlier during the day, shares of LIC settled 0.03 per cent down at Rs 682.15. On the other hand, the benchmark BSE Sensex closed 130 points up at 59,462.
A total of 36.81 lakh policies were sold in the individual segment during the quarter ended June 30, thereby registering an increase of 59.56 per cent over the similar quarter last year when 23.07 lakh policies were sold.
MR Kumar, Chairperson, LIC said, “As the Covid situation normalises, we are seeing a larger activity on the ground, therefore bringing us back closer to our model of having “feet on street” and continuous in person engagement with our customers. While the growth numbers are very robust for the first quarter as seen in comparison to the same quarter of FY2021-22, we are aware that the Q1 of the previous year, FY2021-22 was impacted by a very tough second wave of Covid. However, the trajectory is upwards and we are looking at increased business volumes as is evident in our market share in the year to date since January 2022.”
The solvency ratio stood at 188.54 per cent in Q1FY23 as against 173.34 per cent in Q1FY22.
The value of new business (VNB) (Gross) stood at Rs 1,861 crore for the quarter ended June 30. Meanwhile, the asset under management increased to Rs 41.02 lakh crore as on June 30, 2022 as compared to Rs 38.13 lakh crore in the same quarter last year, registering an increase of 7.57 per cent.
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