Life Insurance Corporation’s (LIC’s) shares jumped 5.85 per cent following its July-September quarter (Q2FY23) earnings where it reported a multifold jump in net profit due to a change in its accounting policy, wherein it transferred Rs 14,271.80 crore to the shareholders’ account from the non-participatory account.
Shares of the insurance behemoth rallied 8.7 per cent to Rs 682.7 intraday on the BSE, finally ending at Rs 664.80 apiece. Similarly, the shares jumped 9.11 per cent to Rs 684.9 intraday on the NSE, and closed at Rs 664.2 apiece, up 5.81 per cent.
Net profit of the corporation in Q2 stood at Rs 15,952.49 crore, up 11 times from Rs 1,433.71 crore in the year-ago period. In the preceding quarter, the insurer had reported a net profit of Rs 682.88 crore.
Having said that, its embedded value (EV) was flat at Rs 5.44 trillion as of July-September quarter, despite Rs 10,000 crore increase in value of new business in the past one year. In the year-ago period, the corporation reported an EV of Rs 5.4 trillion.
