LIC’s Q3 earnings increased 49% to ₹9,444 cr, gains net premium at 4.6%.

Growth in net premium income and net income from investments were the primary drivers of the better performance. The net premium income of the biggest insurer in India increased by 4.6% to ₹1.17 trillion in Q3 FY24 from ₹1.11 trillion.

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During the December quarter of FY2024, the Life Insurance Corporation of India (LIC) saw a 49% year-over-year increase in net profit, reaching ₹9,444.4 crore as opposed to ₹6,334.2 crore during the same time the previous year.

Growth in net premium income and net income from investments were the primary drivers of the better performance. The net premium income of the biggest insurer in India increased by 4.6% to ₹1.17 trillion in Q3 FY24 from ₹1.11 trillion.

Furthermore, during the December quarter, LIC’s net income from investments climbed by 12% year over year to ₹95,266.8 crore from ₹84,869 crore in Q3FY2023; at the same time, management expenses increased by 32% year over year to ₹18,193.8 crore.

The interim dividend of ₹4 per share for FY24 was suggested by the board of the corporation, and the record date was set for February 21, 2024.

“Our consistent and focused approach towards diversifying and changing our product mix is now yielding results at a faster pace, LIC chairman Siddhartha Mohanty stated.

“We want to make sure that every action of ours is value accretive to all stakeholders. We will relentlessly pursue our targeted product and channel mix with the support of all our employees, agency force and channel partners. We are committed to developing new products designed to meet the evolving needs of our customers. With our digital transformation project underway, we are confident of making significant improvements in our business processes,” he continued.

The Prime Minister’s compliments on the success of the company caused the share price of LIC to surge to an all-time high of ₹1,145. In addition, the insurer’s market value for the first time exceeded ₹7 trillion. Since becoming public on May 17, 2022, LIC has given its investors a strong return of 26.3%, outpacing the ₹949 issue price per share.

“LIC’s recent rally is driven by a confluence of factors like LIC’s chairman expressing confidence in achieving a double-digit growth in new business premiums for the financial year 2024, boosting investor sentiment. Reduced embedded value losses in the last quarter signal improved financial health, implying potential for higher profitability in the coming years,” mentioned Pravesh Gour, senior technical analyst at Swastika Investmart Ltd.

Although somewhat less than the previous year’s amount, LIC sold 12.55 million in the individual sector over the nine-month period, maintaining a robust sales volume despite the drop in premium revenue.

LIC held, for the nine months ending in December 2023, 38.74% of individual business and 72.24% of group business. In contrast to the prior year, the overall premium income for the same period dropped by 5.7% to ₹3.42 trillion.

As of December 31, 2023, the assets under management (AUM) of the corporation had increased to ₹49.66 trillion, indicating a gain of 11.98% year over year. As of December 31, 2023, LIC’s solvency ratio has improved to 1.93 from 1.85 the previous year. On Thursday, LIC share closed 5.82% up at ₹1,105.25 apiece on the BSE.

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