M.R. Kumar, chairperson, LIC
The corporation’s VNB margins for the period Q1FY23 are 13.6% (Net). The Gross VNB of the Individual business was Rs 1277 crore and for group business was Rs 583 crore for the reporting quarter
The gross VNB margins for the Individual and group business were 19.80% and 15.26% respectively. Within the individual business, the Par(participatory) business, Non Par business (including Linked business) had gross VNB margins of 14.38% and 84.20% respectively
M.R. Kumar, chairperson, LIC said, “As the Covid situation normalises, we are seeing a larger activity on the ground, therefore bringing us back closer to our model of having “feet on street” and continuous in person engagement with our customers.
Mumbai:
Recently listed Life Insurance Corporation(LIC) registered an increase of 20.35 per cent in the total premium income at Rs 98,352 crore as compared to Rs. 81,721 crore for the quarter ended June 30th 2021 during the previous year.
LIC’s profit after tax (PAT) for the Q1FY23 was Rs 682.88 crore, rising multifold from Rs 29.4 crore in the corresponding quarter of the last fiscal year.
The corporation’s VNB(value of new business) margins for the period Q1FY23 are 13.6% (Net). The Gross VNB of the Individual business was Rs 1277 crore and for group business was Rs 583 crore for the reporting quarter.
The gross VNB margins for the Individual and group business were 19.80% and 15.26% respectively. Within the individual business, the Par(participatory) business, Non Par business (including Linked business) had gross VNB margins of 14.38% and 84.20% respectively.
The asset under management increased to Rs 41.02 Lakh crore as on June 30th 2022 as compared to Rs. 38.13 Lakh crore on June 30th 2021 registering an increase of 7.57%.
M.R. Kumar, chairperson, LIC said,“As the Covid situation normalises, we are seeing a larger activity on the ground, therefore bringing us back closer to our model of having “feet on street” and continuous in person engagement with our customers.”
“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, FY 2021-22 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. `We are glad to inform that LIC has been now included in the Fortune 500 list of companies and is placed at number 98 in the list. With this ranking, LIC is the top ranked Indian company on the Fortune 500 list.”
He further said the life insurer is focusing on increasing the share of non-participatory policies in its product mix that this should aid margins in the coming quarters. Non-participatory policies are where policyholders do not get the share in the profits of the company and are simple and plain life covers.
The share of these products was 7.7 percent in the June quarter and should reach 10 percent by the end of the current financial year, said Kumar.
The corporation has made a net investment of Rs 34,000 crore in equity and made a profit of Rs 5,700 crore in equity trading during the reporting quarter, he said.
The corporation’s yield on investments for policyholders excluding unrealised gains was 7.74%, down from 8.39 %.
LIC’s net NPAs in the policyholders fund declined to Rs 9 Crore for the quarter ended June 2022. As against gross NPA of Rs 26,620 crore, NPA provision of Rs 26,611 crore has been made for quarter ended June 2022.
The marketing activity picked up pace, overall business momentum was strong for LIC and as a result the overall market share by First Year Premium Income (as per IRDAI) increased to 65.42% for Q1FY 23 as compared to full year market share of 63.25% for FY 2021-22.
The market share by First Year Premium Income for the quarter ended June 30th 2021 was 67.52%.
The corporation’s total income came at Rs 1,68,881 crore for the June quarter as against Rs 1,54,153 crore in the year-ago period, it said.
When compared with the preceding March quarter, the performance was down across parameters, the filings showed.
The net profit had come at Rs 2,371 crore, first year premium stood at Rs 14,614 crore and total income stood at Rs 2,11,451 crore in the March quarter.
On an Annualised Premium Equivalent (APE) basis the total premium was Rs.10,270 crore for Q1 FY 23 .
Of this 62.80 percent (Rs. 6,450 crore) was accounted for by the Individual Business and 37.20 percent (Rs. 3,819 crore) by the Group Business.
A total of 36.81 Lakh policies were sold in the individual segment during the reporting quarter thereby registering an increase of 59.56 percent over the similar quarter last year when 23.07 lakh policies were sold.
For the quarter ended June 30, 2022, the persistency ratios on premium basis for the 13th month, and 61st month were 75.75%, and 58.99% respectively.
LIC shares closed 0.03 per cent down at Rs 682.15 apiece on the BSE on Friday against 0.22 per cent gain on benchmark Sensex.
No timeline from government for selling IDBI stake
Life Insurance Corporation has said it has not received any timeline from the government for the stake sale in its subsidiary IDBI Bank.
LIC owns 49.2 per cent of the lender and the government and public own the remaining shareholdings in the bank which was on the verge of collapse before it was forced into the control of LIC weighed by a third of its loans turning dud.
Kumar said the corporation has no timeline yet for the stake sale. The divestment department is working on it but so far no expression of interest has been called in. Nor has there been any formal proposal from the department to us, he added.
In its IPO filings in March this year, the insurance behemoth had said that it would retain part of its 51 per cent stake in IDBI Bank to reap the benefits of the bancassurance channel. The plan is to completely privatise the bank as the government wants to exit it.
IDBI Bank became a subsidiary of LIC with effect from January 2019, following the acquisition of an additional 82,75,90,885 equity shares.
On December 19, 2020, IDBI Bank was reclassified as an associate company due to the reduction of LIC shareholding to 49.24 per cent following the issuance of additional equity shares by the bank under a qualified institutional placement.