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Life Insurance Corporation of India (LICI), the state-run insurance giant, released its financial results for the quarter ended June 30, 2023. Here’s a summary of the key points from the earnings report:

• Profit Surge: LIC, the state-run insurance giant, released its Q1FY24 financial results, revealing an impressive surge in profit. The company reported a near fourteen-fold increase in profit for the quarter, with its profit standing at ₹9,544 crore in Q1 FY24, compared to ₹683 crore in Q1 FY23.
• Total Income: LIC’s total income displayed healthy growth, reaching ₹1,88,749 crore in the June quarter of FY24, compared to ₹1,68,881 crore in the year-ago period. This growth in total income underscores the company’s positive performance during the quarter.
• Net Income from Investments: LIC’s net income from investments witnessed a substantial increase, rising to ₹90,309 crore in Q1 FY24, as compared to ₹69,571 crore in the same period of the previous fiscal. This substantial rise indicates strong investment performance by LIC.
• Premium Income: LIC registered a total Premium Income of ₹98,363 crore for the quarter ended June 30, 2023, a slight increase compared to ₹98,352 crore for the same period in the previous year.
• Policy Sales: While LIC sold a higher number of policies (36,81,764) in Q1 FY23, the number of policies sold in the individual segment decreased to 32,16,301 during the quarter ended June 30, 2023.
• Business Strategy: Siddhartha Mohanty, Chairperson of LIC, highlighted the company’s efforts to improve non-par product mix, persistency, and expense ratios. The company’s margins remained stable on a year-on-year basis. The focus on diversifying the channel mix and contributing to the goal of “Insurance for all by 2047” underscores LIC’s commitment to providing financial security to people.
• Solvency Ratio: LIC’s solvency ratio improved to 1.89 at the end of the June quarter, up from 1.87 in the March quarter and 1.88 in the June quarter of the previous year.
• Persistency Ratio: The 13th month persistency ratio increased to 75.10% at the end of the first quarter, up from 70.16% in the previous quarter. The persistency ratio stood at 75.75% as of June 2023.
• Stock Performance: Shares of LIC closed 0.36% lower at Rs 641.60 apiece on the NSE. Over the last six months, LIC shares have risen by 5.75%, while they have declined by 6% over the last year.

Overall, LIC’s Q1FY24 earnings report reflects robust financial performance, with a substantial increase in profit, total income, and net income from investments compared to the previous year. Despite a slight decrease in policy sales in the individual segment, the company’s strategic efforts to enhance its product mix and persistency bode well for its business growth and value creation for stakeholders.