MUMBAI: National insurer Life Insurance Corporation (LIC) has delivered a strong set of numbers with more than doubling of the more margin-yielding non-par products share to 23.52% in the June quarter from 10.22% in the year-ago period, which boosted the standalone net income by 9.61% to Rs 10,544 crore for the reporting period, which also saw its market share improving.
The insurer’s net premium income rose 16% to Rs 1.14 lakh crore in the reporting quarter compared to Rs 98,755 crore in the year ago period, boosting its AUM by over 16.22% to Rs 53.59 lakh crore.
Even though it underwrote more policies during the quarter, the company has reported better solvency ratio at 1.99 up from 1.89 in the previous reporting period. This was partly because the company massively improved its non-performing assets which for the quarter plunged to 1.95% from 2.48%.
Addressing the media on Thursday, chief executive (who till recently was the chairman) Siddhartha Mohanty said the key annualised premium equivalent rose 21% y-o-y to Rs 11,560 crore. Mohanty attributed the good set of numbers to stable margins and lower expenses ratio along with good gains from the market investment, which rose 1.35% on-year to R15,500 crore from Rs 13,300 crore. Of its total AUM of R53.59 lakh crore, the Corporation invests 60% or R30 lakh crore in government securities.
Mohanty said the company has so far this fiscal invested Rs 38,000 crore in equities, up from Rs 23,300 crore, while in the entire FY24 the equity investment was Rs 1.32 lakh crore.
And that the Corporation will at least match FY24 number this fiscal too. So far LIC has been a net buyer of equities this fiscal. New business premium income (individual) rose 13.67% to Rs 11,892 crore, while the overall annual premium equivalent (APE) jumped 21.28% to Rs 11,560 crore. Individual business non-par APE soared 166% to Rs 1,615 crore, helping more than double the non-par share in overall product mix to 23.52% from 10.22% a year ago.