MUMBAI: Life Insurance Corporation of India (LIC), country’s largest insurer, on Thursday announced 27 times rise in its net profit to Rs 6,334.19 crore for the quarter ending December 2022 compared to Rs 235 crore a year ago, driven by strong growth in premium income and transfer of Rs 5,670 crore of surplus from non-participatory funds to shareholders’ account.
Net premium income of the state-backed insurer increased 14.5% to Rs 1.12 lakh crore from Rs 97,620 crore in the same quarter of the previous year while its revenue rose 13% to Rs 1.96 lakh crore at the end of December last year.
“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,” said LIC Chairperson M R Kumar while addressing a virtual press conference.
He added that the change in taxation policies announced in the Union budget will not have any material impact on its business as it does not sell policies merely to provide tax benefits. LIC’s Assets Under Management (AUM) increased to Rs 44.35 lakh crore as on December 31, 2022, as compared to Rs 40.12 lakh crore on December 30th, 2021 registering an increase of 10.54% year-on-year.
The operating expense ratio for the nine months ending December 31, 2022, increased by 27 bps to 15.26% as compared to 14.99% for the nine months ending December 31, 2021.The insurer has managed to increase its market share. LIC’s market share by First Year Premium Income stood at 65.38% for the nine-month ended December 31, 2022 as compared to 61.40% for the corresponding period last year.
LIC’s income from investments rose to Rs 84,889 crore from Rs 76,574.24 crore a year ago. The gross VNB (value of new business) of the individual business was Rs 4,683 crore and for group business was Rs 2,504 crore for nine month period. On an annualised premium equivalent (APE) basis, the total premium was Rs 37,545 crore for the nine months ending December 31, 2022. Of this, Rs 23,419 crore (62.38%) was accounted for by the individual business and Rs 14,126 crore (37.62%) by the group business.
LIC officials to meet Adani management
That Life Insurance Corporation of India (LIC) officials will meet top management of Adani Group to get clarity on how it plans to deal with crisis triggered by allegations levelled by Hindenburg Research. “We are soon going to call them to meet us and explain. We want to understand what is happening in the market and in the group,” said LIC chairperson M R Kumar.