Public sector insurer Life Insurance Corporation (LIC) on Wednesday reported a 466 percent year-on-year (YoY) jump in net profit at Rs 13,428 crore for the fourth quarter that ended March 31, 2023. In the corresponding quarter last year, the company posted a net profit of Rs 2,371 crore, LIC said in a regulatory filing.

However, the total income of the insurer during the March quarter declined to Rs 2,01,022 crore from Rs 2,15,487 crore in the same period of the previous fiscal. LIC's income from first-year premium also came down to Rs 12,852 crore against Rs 14,663 crore in the same quarter previous fiscal.

The income from renewal premiums in the reporting period rose to Rs 76,328 crore compared to Rs 71,473 crore a year ago, while the single premium decreased to Rs 43,252 crore from Rs 58,251 crore. For the entire financial year 2022-23, LIC registered a multi-fold rise in net profit to Rs 35,997 crore from Rs 4,125 crore in the previous financial year.

Annualised Premium Equivalent

On an Annualised Premium Equivalent (APE) basis, the total premium was Rs 56,682 crore for the year ended March 31, 2023, as compared to Rs 50,390 crore for the year ended March 31, 2022, representing a growth of 12.49 percent year-on-year.

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For FY 2023, 68.22 percent (Rs 38,667 crore) was accounted for by the Individual Business and 31.78 percent (Rs 18,015 crore) by the Group Business. The Individual business APE grew by 8.70 percent year-on-year during FY 2023.

Also, within the Individual business, on an APE basis, the share of par products and non-par products was 91.11 percent and 8.89 percent respectively. For FY2023, the Group APE (Rs 18,015 crore) grew by 21.57 percent over the previous year ending March 31, 2022 (Rs 14,818 crore).

VNB

The Value of New Business (VNB) (Gross) for the year ended March 31, 2023, was Rs 11,553 crore as against Rs 9,920 crore for the previous year ending March 31, 2022, representing an increase of 16.46 percent. The VNB margins for the year ended March 31, 2023, are 16.2 percent (Net) as compared to 15.1 percent (Net) for the year ended March 31, 2022.

The Gross VNB of the Individual business was Rs 7,571 crore and for the Group business was Rs 3,982 crore for the year ended March 31, 2023. The Gross VNB margins for the Individual and Group businesses were 19.6 percent and 22.1 percent, respectively.

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AUM

The Assets Under Management (AUM) increased to Rs 43.97 lakh crore as on March 31, 2023, as compared to Rs 40.85 lakh crore on March 31, 2022, registering an increase of 7.65 percent year-on-year. The Yield on Investments on policyholders' funds excluding unrealised gains was 8.29 percent for the year ended March 31, 2023, as against 8.55 percent for the year ended March 31, 2022.

The Solvency Ratio for the year ended March 31, 2023, is 1.87 (before considering the proposed final dividend of Rs 3 per share for FY23) and will be 1.86 (after consideration of the proposed final dividend for FY23) as against 1.85 for the year ended March 31, 2022.

For the year ended March 31, 2023, the persistency ratios, on the number of policies basis for the 13th month and 61st month were 64.28 percent, and 49.86 percent, respectively. The comparable persistency ratios for the previous year ended March 31, 2022, were 63.45 percent and 49.86 percent, respectively.

The board of LIC has recommended a final dividend of Rs 3 per equity share with a face value of Rs 10 each for the year ending March 31, 2023.

(Edited by : Pradeep John)

First Published:May 24, 2023 9:49 PM IST