Life Insurance Corporation of India (LIC) Ltd. reported standalone first-quarter net profit surged to ₹682.88 from ₹2.94 crore in the year-earlier period.
Total premium income rose 20.35% to ₹98,351.77 crore.
LIC said marketing activity picked up pace and the overall business momentum was strong. The market share of the first year premium Income stood at 65.42% for the quarter compared with 67.52% in the year-earlier period.
While policy surrenders have increased, there has also been an increase in net commissions and expenditure of management.
A total of 36.81 lakh policies were sold in the individual segment, up 59.56% over the year-earlier period when 23.07 lakh policies were sold.
Assets under management increased to ₹41.02 lakh crore as compared to ₹38.13 lakh crore in the year-earlier period, up 7.57%.
The Net NPAs in the policyholders’ fund declined to ₹9 crore from ₹194 crore a year ago. As against Gross NPA of ₹26,620 crore, NPA provision of ₹26,611 crore has been made for quarter ended June 30, LIC said in a filing..
The solvency ratio for the quarter was 188.54% as against 173.34% for the same period last year.
Addressing a virtual press conference M.R. Kumar, chairperson, LIC said “ We have done quite well in this quarter. Q1 is always a slow start. We are positive going forward.”
He said “While the growth numbers are very robust for the first quarter as seen in comparison to the same quarter of FY 2021-22, we are aware that the Q1 of the previous year was impacted by a very tough second wave of Covid. However, the trajectory is upwards and we are looking at increased business volumes as is evident in our market share in the year to date since January 2022.”
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