NEW DELHI: The Life Insurance Corporation of India (LIC) on Thursday reported a 49% growth in net profit at Rs 9,444 crore for the third quarter ended December 2023 (Q3FY24).
The insurer had a net profit of Rs 6,334 crore in the year-ago period. Total income surpassed Rs 2 lakh crore mark to Rs 2,12,447 crore in Q3FY24 as against Rs 1,96,891 crore in the year-ago period. LIC said an amount of Rs 7,692.34 crore for the quarter ending December 31 to shareholder’s account due to changes made in its accounting policy in September 2022 and due to this, the profit in this quarter is not comparable to the past quarters. In the December quarter of last year, LIC transferred `5,669.79 crore to the shareholder’s account.
Net premium income grew 4.67 % to Rs 1.17 lakh crore in Q3, from Rs 1.11 lakh crore in the year-ago period. The country’s largest insurer announced an interim dividend of Rs 4 per share. Value of new business grew to Rs 2,634 crore in December quarter as aginst Rs 1,801 crore in the year-ago quarter. Gross non-performing assets registered a big improvement as it came down to 2.15% in Q3FY24 from 5.02% in Q3FY23.
Siddhartha Mohanty, Chairperson, LIC, said, “The same is evident on the rise in share of Non Par business on Annualized Premium Equivalent (APE) basis to 14.04% of our total individual business for the first nine months of FY24. The fact that this is accompanied by 200 bps increase in the VNB margin levels to 16.6% is an indicator that our strategic interventions are delivering in the manner that we envisaged.”