Life Insurance Corporation of India (LIC). | Photo source: REUTERS
The Life Insurance Corporation of India (LIC) said standalone net profit for the fourth quarter rose marginally by 2.49% to ₹ 13,763 crore compared to ₹ 13,428 crore in the year-ago period due to the impact of significantly higher salary arrears. employees and social spending.
During the quarter, the corporation allocated ₹13,750 crore towards employee wages and welfare as against ₹10,381 crore in the same period last year.
For the full year, ₹ 39,584 crore was allocated for this purpose as against ₹ 40,094 crore in the previous year.
LIC’s net premium income for the quarter rose to ₹ 1,52,293 crore compared to ₹ 1,31,761 crore in the same period a year ago. Investment income during the quarter also increased to ₹ 84,425 crore compared to ₹ 67,847 crore in the same period last year.
For FY24, the corporation posted a net profit of ₹ 40,676 crore as against ₹ 36,397 crore in the previous year, an boost of 11.75%.
In September 2022, LIC changed its accounting policy to transfer the amount relating to the boost in available solvency margin from the Non-Participating Policyholders account to the Shareholders account and accordingly transferred a total amount of ₹ 29,518.75 crore (net of tax) in the financial year 2023-24 as against ₹27,240.75 crore in the financial year 2022-23 which included ₹4,542.31 crore for the quarter ended March 31, 2022.
The board has recommended a final dividend of ₹6 per share for FY24.
Earlier in the year an interim dividend of £4 was declared and paid to shareholders.
For FY25, LIC has provided a forecast of double-digit margin growth.
For the year ended March 31, LIC’s market share in individual operations was 38.44% and in group operations was 72.30%.
Total premium income for FY24 remained unchanged at ₹ 4,75,070 crore as against ₹ 4,74,005 crore for the previous year.
In FY24, a total of 2,03,92,973 policies were sold in the individual segment as against 2,04,28,937 in the previous year.
Assets under management (AUM) increased by 16.48% to ₹51,21,887 crore in FY24 as against ₹43,97,205 crore in FY23.
Siddhartha Mohanty, Chairperson, LIC, said, “Last year, we focused on directional changes in our product range and increasing margins in the industry.”
“We have more than doubled our share of non-standard activities within our individual business. We now intend to focus our strategic interventions on maximizing our market share across all categories,” he said
“At the same time, as demonstrated, we will continue to focus on the various parameters that create the highest value for all stakeholders. Key initiatives related to the distribution channel and digital transformation are underway,” he added.
“We are confident that our employees, agents and sales partners are fully committed to achieving these goals. We look forward to this year as the year where our revenue growth trajectory will refocus, he further added.
