LIC reports Rs 1,437 cr profit; persistency ratio falls
NEW DELHI: The IPO-bound Life Insurance Corporation (LIC) reported Rs 1,437 crore net profit in the first half of 2021-22 compared to Rs 6.14 crore in the same period in the previous year. The state-owned life insurer also reported Rs 1,452 crore in revenue during the period.
During the first half of the current financial year, the insurer earned Rs 1.86 lakh crore in premium compared to Rs 1.84 lakh crore, registering a flat growth of 1%. During the same period, the company made Rs 1.49 lakh crore through different investments.
LIC’s new business premium (linked policies) grew 554% in the first half of FY22 compared to 395% in the corresponding period in the previous financial year. Premium from individual policies accounted for 46% of the total new business premium earned by the insurer during the financial year. In the previous year, individual policies had accounted for 58% of the total new business premium.
It reported gross NPAs of 6.57% of the policyholder’s fund in the first half of the current financial year, 139 basis points lower than the same period last year. The company improved its solvency ratio to 183% compared to 165% in the previous year.
The average ticket size of the premium paid towards individual policies (non-single) came down to Rs 16,944 during the period compared with Rs 18,940 in the previous year. The persistency ratio of individual policies also worsened during the Apr-Sept FY22 period with only 49% of policies being continued after five years.
Last year the persistency ratio was 52%. Meanwhile, sources in the know say that LIC would most likely file its IPO paper with SEBI in the first week of February.
United Spirits Q3 net profit at Rs 295 cr
United Spirits on Tuesday reported a 5% y-o-y increase in its consolidated net profit for the third quarter ended December 31, 2021, at Rs 295 crore.
The company reported Rs 280 crore profit during the same quarter of the last financial year. The company’s consolidated revenue from operations grew 6% at Rs 8,917.2 crore in the third quarter compared to Rs 8,410.3 crore in the same quarter last year.
Healthy operating cash flow has enabled the Diageo Group company to reach debt-free status as of December 31, 2021.