The Indian Embedded Value (IEV) of the corporation has been determined as Rs.5,82,243 crore as at March 31st ,2023 as compared to Rs. 5,41,492 crore as at March 31st,2022 and Rs. 5,44,291 crore as at September 30th,2022, showing a growth of 7.53 per cent y-o-y basis.
LIC’s Assets Under Management (AUM) increased to Rs. 43.97 lakh crore as on March 31st,2023 as compared to Rs. 40.85 lakh crore on March 31st,2022 registering an increase of 7.65 per cent year on year
Mumbai:
Due to the change in the accounting policy, Life Insurance Corporation (LIC) has seen its net profit zooming by almost 500 per cent year-on- year (y-o-y) to Rs 13,427.8 crore in quarter ended March FY23.
The net profit of the corporation for the March FY22 quarter stood at Rs 2,371.5 crore.
The corporation has recommended final dividend of Rs 3 per share in FY23.
Net premium income of the corporation shrank by 8.3 percent year-on-year to Rs 1.31 lakh crore for March FY23 quarter.
LIC’s first year premium during the reporting quarter stood at Rs 12,852 crore, down 12% from Rs 14,614 crore in the year-ago quarter.
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.
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 said in a regulatory filing.
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.
The Value of New Business (VNB) (Gross) for the year ended March 31st,2023 was Rs.11,553 crore as against Rs.9,920 crore for the previous year ending March 31st 2022 representing an increase of 16.46 per cent.
The VNB margins for the year ended March 31st,2023 are 16.2 per cent (Net) as compared to 15.1 per cent (Net) for Fy 2023.
The gross VNB of the Individual business was Rs. 7,571 crore and for Group business was Rs. 3,982 crore for year FY 2023.
The gross VNB margins for the Individual and Group business were 19.6 per cent and 22.1 per cent, respectively.
Within the Individual business, the Participatory(Par) business, Non Par business (including Linked business) had gross VNB margins of 14.6 per centr and 70.4 per cent, respectively.
The Indian Embedded Value (IEV) of the corporation has been determined as Rs.5,82,243 crore as at March 31st ,2023 as compared to Rs. 5,41,492 crore as at March 31st,2022 and Rs. 5,44,291 crore as at September 30th,2022, showing a growth of 7.53 per cent y-o-y basis.
Siddhartha Mohanty, chairperson, LIC said: “Our results demonstrate the resilience of our business, built in every nook and corner of the country, over a period of more than six decades. Our efforts towards enhancing the share of non par products
in the overall product mix are bearing fruits. With the increase in profit, net VNB margin and IEV we are well positioned to continue our growth journey, As we move forward to grow our business further, we will endeavour to create superior value for all our stakeholders.”
LIC’s Income from investments rose marginally to Rs 67,846 crore for the January-March period as compared to Rs 67498 crore in year-ago period.
The life insurer’s solvency ratio improved to 1.87 at the end of March quarter, up from 1.85 in the December quarter and March quarter of last year.
For the year ended March 31st,2023, LIC registered an increase of 10.90 per cent in the total premium income at Rs.4,74,005 crore as compared to Rs. 4,27,419 crore for the previous year ended March 31st, 2022.
LIC’s Assets Under Management (AUM) increased to Rs. 43.97 lakh crore as on March 31st,2023 as compared to Rs. 40.85 lakh crore on March 31st,2022 registering an increase of 7.65 per cent year on year.
The Yield on Investments on policyholders funds excluding unrealized gains was 8.29 per cent for year ended March 31st ,2023 as against 8.55 per cent for year ended March 31st 2022.
The corporation’s 13th month persistency ratio at the end of fourth quarter was at 70.16%, as against 70.94% in the third quarter. It was 69.24 per cent as of March 2022.
As per the corporation’s board’s approved policy on distribution of surplus, out of the total surplus of participating fund it has transferred 92.5 per cent (95 per cent in FY 2021-22) for FY 2022-23 to the participating policyholders fund and balance 7.5 per cent (5 per cent in FY 2021-22) to the shareholders fund.