Life Insurance Corporation of India (LIC) has released its financial results for the first quarter of FY24, showcasing substantial profit growth and key financial highlights:
- Profit Surge: LIC reported a nearly fourteen-fold surge in profit, with a profit after tax of ₹9,544 crore for Q1 FY24, compared to ₹683 crore in Q1 FY23.
- Net Premium Income: Net premium income remained relatively flat at ₹98,363 crore for the quarter.
- Solvency Ratio: The solvency ratio, indicating an insurer’s ability to meet long-term debt obligations, improved marginally to 1.89 compared to 1.88 in the previous year.
- Product Sales and Strategy: LIC experienced a 12.6% drop in policy sales for the quarter. The company raised the minimum ticket size of policies and focused on margin-oriented non-participating products to enhance profitability.
- Investment Income: Net income from investments during the quarter rose to ₹90,309 crore compared to ₹69,571 crore in the same period last year.
- Asset Quality Improvement: Gross non-performing assets ratio eased to 2.48% from 5.84% in the same period a year ago.
- Total Income: The total income increased to ₹1,88,749 crore for the June quarter compared to ₹1,68,881 crore in the same period last year.
- Premium Income: Total premium income remained stable at ₹98,363 crore for the quarter compared to ₹98,352 crore in the corresponding period last year.
- Policy Sales: LIC sold a total of 32,16,301 policies in the individual segment during the quarter, compared to 36,81,764 policies sold in Q1 FY23.
LIC’s Chairperson, Siddhartha Mohanty, highlighted the company’s focus on increasing the share of non-participating products in its business mix and efforts to improve persistency. Mohanty also mentioned their commitment to contributing to the goal of “Insurance for all by 2047,” aiming to provide financial security and livelihood to people.
In summary, LIC’s Q1 FY24 financial results reflect a significant surge in profit, stability in premium income, improvement in solvency ratio, and strategic efforts to optimize its business mix and enhance persistency. The company’s commitment to growth and value creation for stakeholders remains a key focus.
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