Life Insurance Corporation of India (LIC) posted a 5.6-fold increase in its net profit for Q4 FY23 to ₹13,428 crore compared with ₹2,372 crore in the corresponding quarter of the previous year. For FY23, the profit after tax was 10 per cent lower at ₹36,397 crore.
The Q4 profitability was largely led by gains on transfer from policyholders’ accounts, which surged to ₹13,416 crore in Q4 from ₹5,538 crore in the year ago period. On the other hand, transfer to policyholders’ accounts also fell significantly to ₹94 crore from ₹3,266 crore in the previous year.
Investment income under shareholders’ accounts was ₹571 crore ( ₹82 crore). Overall income from investments rose slightly to ₹67,846 crore from ₹67,498 crore in Q4 FY22.
Net premium income fell 8 per cent on year to ₹1.3-lakh crore for the quarter from ₹1.4-lakh crore. The first year premium was at ₹12,811 crore — down 12 per cent from ₹14,614 crore a year ago. Net commission during the quarter rose 5 per cent to ₹8,428 crore.
Solvency ratio
LIC’s 13th month persistency ratio, a measure of customer stickiness, declined marginally to 70.2 per cent from 70.9 per cent in the previous quarter but was better than 69.2 per cent at the end of FY22.
The life insurer had a solvency of 1.87 times, an improvement from a solvency ratio of 1.85 in the December and March quarters.
The board of LIC recommended a final dividend of ₹3 per equity share for FY23.
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