Life Insurance Corporation of India (LIC) reported a surplus of Rs.1,803.05 crore in FY 15, up 10.33 per cent over the previous year. The surplus in policy holders’ accounts was reflected after paying an interim bonus of Rs.1,899.75 crore to its policy holders.
Life Insurance Corporation of India has also proposed the entire surplus amount to be paid as its final dividend to the shareholder – the Union government. The LIC board approved the audited financial results in its meeting on June 9.
LIC’s surplus was pushed up by a higher income from investments and lower commissions and operating expenses. Premium income grew marginally by 1.15 per cent to Rs.2.39 lakh crore.
While non-business recorded 3.8 per cent growth, linked life policies recorded a lower premium income declining from Rs.1.885 crore to Rs.1,314 crore. Profit booking on investments was the next major contributor, rising from Rs.3.908 crore or 16.75 per cent over the previous year to Rs.27.234 crore. Bulk of this income come from non-linked or traditional life policies.
These policies accounted for 75 per cent of the interest and dividend income and 66 per cent of the profit on sale redemption, almost in line with the previous year. LIC had a good year booking significant profit on scrips such as State Bank of India, Business Standard had reported recently.
Loss on sale and redemption of investments also increased significantly, but on a low base. Such losses totalled Rs.1.051 crore, up 62 per cent from FY14.
