NEW DELHI: Life Insurance Corporation of India (LIC), the country’s largest insurance firm, on Friday reported a sharp drop in its sequential quarterly profit - from Rs 2,371 crore in Q4FY22 to Rs 683 crore in Q1FY23, which is nearly three/fourth fall. LIC also registered a sequential slump in almost every key parameter.
The insurer’s total income fell from Rs 2,11,451 crore in the March-ended quarter to Rs 1,68,881 crore in the first quarter of FY23. Its first-year premium in the quarter came at Rs 7,429 crore, significantly lower than Rs 14,614 crore reported in the March quarter. On an annual basis, however, LIC registered a big surge in profit. The state-run life insurer, which went public recently, had a net profit of Rs 2.94 crore in the year-ago June quarter. The company’s first-year premium was reported at Rs 5,088 crore and its total income came at Rs 1,54,153 crore in the year-ago quarter.
“While the growth numbers are very robust for the first quarter as seen in comparison to the same quarter of FY22, we are aware that the Q1 of the previous year, FY22 was impacted by a very tough second wave of Covid,” said MR Kumar, Chairperson of LIC. He added, “However, the trajectory seems upwards for sure and we are looking at increased business volumes as is evident in our market share in the year to date since January 2022.”
Kumar in May’22 had said LIC’s Q4FY21 profit pertained to the full year since LIC was conducting actuarial valuation once a year until that year and hence, net profits reported in Q4FY22 and Q4FY21 are not comparable. In FY22, LIC had reported a PAT of Rs 4,043 crore compared to Rs 2,900 crore in FY21. LIC informed that its market share by first-year premium income (as per IRDAI) increased to 65.42% for the quarter ended June as compared to a full-year market share of 63.25% for FY2021-22. Its asset under management rose to Rs 41.02 lakh crore as of June 30, 2022, as against Rs 38.13 lakh crore on June 30 2021.
Sharp sequential fall
Net profit
Rs 683 cr Q1FY23
Rs 2,371 cr Q4FY22
First-year premium
Rs 7,429 cr Q1FY23
Rs 14,614 cr Q4FY22
Total Income
Rs 1,68,881 cr Q1FY23
Rs 2,11,451 cr Q4FY22