LIC Shares Gain As Q3 PAT Jumps Multi-Fold to Rs 8,334 Crore; Details

Life Insurance Corporation of India (LIC) advanced 3.2 per cent to Rs 633.50 after the state-run life insurer reported a standalone net profit of Rs 6,334.2 crore in Q3 FY23.

Revenue rose 13 per cent YoY to Rs 1.96 lakh crore with net profit surging 26 times to Rs 6,334 crore. Meanwhile, net premium income gained 15 per cent at Rs 1.12 lakh crore.

For 9 Months FY23, the company’s net profit surged to Rs 22,969.58 crore in 9M FY23 from Rs 1,671.57 crore posted in 9M FY22. Total premium income jumped 20.65 per cent year on year to Rs 34,2243.51 crore in 9M FY23.

The life insurer said that the current period profit has increased due to transfer of an amount of Rs 19,941.60 crore (net of tax), pertaining to the accretions on the available solvency margin, from non par to shareholders account. The amount of Rs 19,941.60 crore comprises of Rs 5,669.79 crore for the quarter ended 31 December 2022 besides Rs 5,580.72 crore, Rs 4,148.78 crore and Rs 4,542.31 crore for the preceding three quarters respectively.

LIC stated that the business momentum continues to be strong for the company and as a result the overall market share by first year premium income (as per IRDAI) was 65.38 per cent for the nine month ended 31 December 2022 as compared to 61.40 per cent for the corresponding period last year.

On an annualised premium equivalent (APE) basis the total premium was Rs 37,545 crore for the nine months ending 31 December 2022. Of this Rs 23,419 crore (62.38 per cent) was accounted for by the Individual business and Rs 14,126 crore (37.62 per cent) by the Group business. Within the Individual business, the share of par products on APE basis was 90.55 per cent and balance 9.45 per cent was due to non par products.

The insurance behemoth sold 1.29 crore policies in the individual segment in 9M FY23, registering an increase of 1.92 per cent from 1.26 crore policies sold in the same period last year.

MR Kumar, chairperson of LIC said, We continue to remain focussed on creating a portfolio mix to optimise value for all stakeholders, and in that context, increasing the proportion of Non-par business in a consistent and profitable manner. In the Individual business, on an APE basis, the share of Non Par Business has increased to 9.45 per cent for the nine months ended 31 December 2022, as against 7.12 per cent for full year ended 31 March 2022.

Kumar further added, While the relative growth of various products within the Non-par bucket will vary within each quarter, we believe we are firmly on our way to achieving the target product mix changes. We think the market is showing signs of robust growth and we are confident of retaining and also growing our market share going forward.

LIC has been providing life insurance in India for more than 65 years and is the largest life insurer in the country. Shares of LIC debuted on the bourses on 17 May 2022. The scrip was listed at Rs 867.20, representing an 8.62 per cent discount to the issue price of Rs 949.