Life Insurance Corporation reported a manifold increase in its net profit in the December quarter (Q3) of financial year 2022-23 (FY23), aided by a transfer of Rs 5,670 crore from non-participatory to shareholders’ accounts. Its net profit in Q3 stood at Rs 6,334.19 crore, compared with Rs 234.91 crore in the year-ago period.
In the nine-month period (April-December FY23), the corporation’s profits soared to Rs 22,970 crore, compared with Rs 1,672 crore a year ago. The huge jump was because of the transfer of Rs 19,941 crore to shareholder accounts over the last four quarters.
LIC reported a net premium income of Rs 1.11 trillion in Q3, up 14.51 per cent year-on-year (YoY) from Rs 97,620.34 crore a year ago, with the first-year premium income rising 11 per cent YoY to Rs 9,724.71 crore, renewal premium increasing 6 per cent YoY to Rs 60,194.87 crore, and single premium income jumping 30 per cent YoY to Rs 42,117.10 crore.
Value of new business margin, a measure of profitability of life insurance companies, stood at 14.6 per cent for the nine months of FY23, which was the same at the end of the September quarter (6MFY23), despite a rise in the share of non-par business in its portfolio.
