LIC recorded a net premium income of Rs 98,755.22 crore as against Rs 98,805.25 crore during the first quarter of FY23.
State-run Life Insurance Corporation of India posted a multi-fold surge in profit for the quarter ended June 2023 at Rs 9634.98 crore, on higher income on investments. The profit during the period was up 1498.4 percent in comparison to Rs 602.79 crore during the corresponding quarter of FY23. It recorded a net premium income of Rs 98,755.22 crore as against Rs 98,805.25 crore during the first quarter of FY23. The gross non-performing asset (GNPA) for the quarter stood at 2.48 percent as against 5.84 percent during a year-ago period. Its net NPA was nil, the same as last year.
Meanwhile, income from investments was at Rs 90,767.90 crore, up 30 percent as against Rs 69,833.72 crore during the quarter ended June 2022. LIC’s net commission for the quarter stood at Rs 5158.84 crore, up 2.1 per cent from Rs 5051.97 crore during the same quarter last year.
LIC sold a total of 32,16,301 policies in the individual segment during the quarter ended June 30th, 2023 as compared to 36,81,764 policies sold during the quarter ended June 30th, 2022.
On an Annualised Premium Equivalent (APE) basis, the total premium was Rs 9532 crore for Q1FY24. Of this 62.42 percent (Rs 5950 crore) was accounted for by the Individual business and 37.58 percent (Rs 3582 crore) by the Group business, it said. Within the Individual business the share of Par products on APE basis was 89.78 percent (Rs 5342 crore) and balance 10.22 percent (Rs 608 crore) was due to Non-Par products.
The Assets Under Management (AUM) increased to Rs 46.11 lakh crore during the first quarter of FY24, up 12.41 percent as compared to Rs 41.02 lakh crore on June 30th 2022.
The Value of New Business (VNB) for the quarter was Rs 1302 crore as compared to Rs 1397 crore for the quarter ended June 30th, 2022. The VNB margins for the period ended June 30th, 2023 are 13.7 percent as against 13.6 percent during the year-ago quarter.
“During the first quarter of this financial year, we have achieved an increase in our Non-Par product mix as a percentage of the overall individual business. Further, our efforts to improve persistence across cohorts are beginning to show results. Our overall expense ratio has become better and our margins are stable on a year-on-year basis,” said Siddhartha Mohanty, Chairperson, LIC.
He further added, “We believe that we are on track to grow our business in a manner that creates superior value for all our stakeholders. We are committed, as LIC, to contribute meaningfully to the achievement of the target of “Insurance for all by 2047” thereby providing financial security and livelihood to people.”