LIC posted a greater than five-fold soar in consolidated net profit to ₹13,191 crore for the fourth quarter ended March 2023.
| Photo Credit: Reuters
Insurance behemoth LIC on Wednesday posted a greater than five-fold soar in consolidated net profit to ₹13,191 crore for the fourth quarter ended March 2023.
The insurer had earned a profit of ₹2,409 crore in the identical quarter a 12 months earlier.
However, the entire earnings of the insurer in the course of the March quarter declined to ₹2,01,022 crore from ₹2,15,487 crore in the identical interval of the earlier fiscal, LIC mentioned in a regulatory submitting.
LIC’s earnings from first-year premium additionally got here down to ₹12,852 crore in opposition to ₹14,663 crore in the identical quarter earlier fiscal.
The earnings from renewal premiums within the reporting interval rose to ₹76,328 crore in contrast to ₹71,473 crore a 12 months in the past, whereas the one premium decreased to ₹43,252 crore from ₹58,251 crore.
For all the monetary 12 months 2022-23, LIC registered a multi-fold rise in net profit to ₹35,997 crore from ₹4,125 crore within the previous monetary 12 months.
The surge in annual profit for FY23 was helped by a soar within the second quarter bottomline to ₹15,952 crore. It was due to a switch of ₹15.03 lakh crore to shareholders’ accounts on the finish of September.
The board of LIC has really helpful a closing dividend of ₹3 per fairness share with a face worth of ₹10 every for the 12 months ended March 31, 2023.
The solvency ratio – which measures an insurance coverage firm’s money circulation as compared to the quantity it owes as complete life cowl – elevated to 1.87 per cent as of March 31, 2023, in opposition to 1.85 per cent on the finish of the previous fiscal.
The insurer’s gross non-performing belongings (NPAs) moderated to 2.56 per cent from 6.03 per cent on the finish of March 2022.
In absolute phrases, it declined considerably to ₹12,031 crore from ₹27,087 crore on the finish of the previous monetary 12 months.
LIC introduced down its net NPAs to nil stage from 0.04 per cent on the finish of March 2022.
Shares of the LIC closed 0.61 per cent larger at ₹593.55 apiece on BSE.
Last 12 months, the federal government raised ₹20,557 crore by diluting its 3.5 per cent stake within the LIC via the preliminary public providing (IPO), the nation’s greatest ever.
LIC shares have been listed at a reduction of 8.62 per cent at ₹867.20 apiece on BSE over the difficulty worth of Rs ₹949 a share.
Investors have misplaced practically ₹2.5 lakh crore for the reason that itemizing of shares.
The authorities bought over 22.13 crore shares or a 3.5 per cent stake in LIC via the IPO. The worth band of the difficulty was ₹902-949 a share. However, shares have been allotted to traders on May 12, 2022, on the higher finish of the value band.
