LIC shares rise 6% to hit new 52-week highs; mcap nears Rs 7.5 lakh crore mark

Shares of Life Insurance Corporation of India Ltd (LIC) surged more than 6 per cent during the trading session on Friday after the state-run life insurer announced its earnings for the quarter ended on December 31, 2023. The company announced its results after markets hours on Thursday.

Life Insurance Corporation of India reported 49 per cent on a year-on-year (YoY) basis rise in third-quarter of the ongoing financial year as it moved more money to a shareholders' fund to shore up its bottom line. The company posted standalone net profit of Rs 9,444 crore for the Q3FY24, as against Rs 6,334 crore in the year-ago period.

Following the announcement of results, shares of Life Insurance Corporation of India jumped 6.15 per cent to Rs 1,175 on Thursday, commanding a total market capitalization of more than Rs 7.43 lakh crore. The scrip had settled at Rs 1,106.25 in Thursday's session. LIC is now the fourth most valued domestic listed company after HDFC Bank.

Shares of LIC have surged more than 120 per cent from its 52-week low at Rs 530.20 hit in March 2023. The stock is up 24 per cent from its issue price of 949, while the stock has surged 30 per cent from its issue price of 904 for employees and retail investors. The stock is up 32 per cent from its issue price of Rs 889 for the policyholders.

Net premium income grew 4.67 percent to Rs 1.17 lakh crore in the quarter under review, from Rs 1.11 lakh crore in the year-ago period, the country's largest insurer said in an exchange filing. The insurer also announced an interim dividend of Rs 4 per share, first time since its Dalal Street debut in May 2022.

The annual premium equivalent (APE), the key metric of new business sales growth, rose 6.4 per cent YoY to Rs 13,163 crore compared to Rs 12,370 crore the previous year. The insurer's value of new business increased to Rs 2,634 crore from Rs 1,801 crore during the quarter under review.

LIC's gross non-performing assets (GNPAs) decreased to 2.15 per cent from 5.02 per cent in the prior year. The solvency ratio of the insurer improved to 1.93 per cent from 1.85 per cent in the same quarter last year. Assets Under Management (AUM) surged to Rs. 49.66 lakh crore as of December 2023, marking a 11.98 per cent YoY increase.

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