Surpassing market expectations, the Life Insurance Corporation of India (LIC) on Wednesday reported a five-fold increase in its profit after tax.
As per a Reuters report, LIC’s profit after tax stood at 134.28 billion rupees in the last quarter of FY23 (January to March 2023), which is a substantial increase compared to 23.72 billion rupees posted a year earlier.
To add to LIC’s bumper profits, its strategic move to transfer a substantial amount of 72.99 billion rupees from its non-participating fund to the shareholders’ fund has fortified its financial position. The fund stood at 272.41 billion rupees, as on March 31, 2023.
The state-owned insurer reported an even better standalone net profit in the first three months of 2023.
The state-owned insurer posted a standalone net profit of Rs 13,427.8 in the Q4 of 2023, which is a whopping six-fold rise from Rs 2,371.5 crore in the March quarter of 2022.
Backed by exceptional financial results, LIC has declared a final dividend of three rupees per share for the recently-concluded financial year. This announcement will be welcomed by LIC’s shareholders, who have taken a 32 percent hit since the insurer was listed in May 2022.
During the fourth quarter of 2022-23, LIC experienced a year-on-year decline of 8.3 percent in standalone net premium income, amounting to Rs 1.31 lakh crore. However, on a sequential basis, the premium income showed a notable increase of 17.9 percent.
According to LIC, first-year premium declined 12.33 percent year-on-year to reach Rs 12,811.2 crore. On the other hand, the renewal premium grew 6.8 percent to reach Rs 76,009 crore.
(With inputs from Reuters)
For all the latest business News Click Here
