State-owned Life Insurance Corporation, which recognised a gain as a result of changes to its accounting rules, on Thursday announced a multi-fold increase in net profit for the quarter ended December 31, 2022, coming in at Rs 6,334 crore as opposed to Rs 235 crore in the prior period.
In-depth details about LIC Q3 Net profit increased to 8334 crore
Net premium income for the insurer increased by 15% to Rs 1.1 lakh crore in Q3FY23 from Rs 97,620 crore in Q3FY22.
The company’s BSE stock finished the day 0.5% higher at Rs 613.5.
According to a stock exchange report by the business, LIC’s income from investments increased to Rs 84,889 crore from Rs 76,574.24 crore a year before.
Its investments in the financially troubled Adani Group have drawn harsh criticism, despite the fact that the close to Rs 36,000 crore investment is still profitable despite the shares’ roughly 60% decline in value since January 25.
“In order to maximise value for all stakeholders, we continue to be focused on building a portfolio mix and, within that framework, steadily and profitably expanding the amount of Non-par business. On an APE basis, the share of Non Par Business in the Individual business climbed to 9.45% for the nine months ended December 31st, 2022, from 7.12% for the full year ended March 31st, 2022”
“We believe we are well on our approach to reaching the intended product mix changes, even though the proportionate growth of different items within the Non-par bucket will alter from quarter to quarter. We believe the market is demonstrating strong growth, and we are optimistic about maintaining and expanding our market share moving forward ” LIC Chairperson M. R. Kumar remarked.
The insurer, which relies heavily on an army of agents, reported that the number of policies sold in the nine months that ended on December 31 increased by almost 2% year over year to 12.9 million.
Its solvency ratio, a metric used to assess an insurer’s capacity to service long-term debt, increased from 1.77 to 1.85 from a year earlier.
The company’s gross value of new business (VNB), a key indicator of future growth that quantifies predicted profit from new premiums, was Rs 7,187 crore, with VNB margins coming in at 19.1%.
LIC has insisted that its clients do not need to be concerned about the exposure to Adani firms despite the fact that it has invested more than $4 billion, or around 1% of its assets under management, in Adani Group companies.