The state-run life insurer's standalone net profit surged 49.1% to Rs 9,444.41 crore in Q3 FY24 as against Rs 6,334.19 crore recorded in Q3 FY23.
Total premium income stood at Rs 1,17,016.92 crore in Q3 FY24, up 4.67% from Rs 1,11,787.60 crore posted in Q3 FY23.On nine month basis, the companys net profit stood at Rs 26,913 crore in 9M FY24. The current period profit includes an amount of Rs 21,461 crore (net of tax), pertaining to the accretions on the available solvency margin, transferred from non-par fund to shareholders account.
The PAT for similar nine months ended 31 December 2023 was Rs 22,970 crore is not comparable since it included an amount of Rs 4,542 crore (net of tax) pertaining to the accretions on the available solvency margin for the last quarter of FY 2021-22 which was transferred from Non Par fund to shareholders account on 30 September 2022., the company stated.
Total premium income declined 5.68% year on year to Rs 3,22,776.45 crore in 9M FY24.
In terms of market share measured by First Year Premium Income (FYPI) (as per IRDAI), LIC continues to be the market leader by market share in Indian life insurance business with overall market share of 58.90%. For nine months ended 31 December 2023, LIC had a market share of 38.74 % in Individual business and 72.24% in the group business.
On an Annualized Premium Equivalent (APE) basis, the total premium was Rs 35,790 crore for the nine months period ended 31 December 2023. Of this 65.67% (Rs 23,503 crore) was accounted for by the Individual Business and 34.33% (Rs 12,287 crore) by the Group Business.
Within the individual business the share of par products on APE basis was 85.96% (Rs 20,203 crore) and balance 14.04% (Rs 3,299 crore) was due to non par products. The non-par APE has increased from Rs 2,213 crore for the nine month period ended 31 December 2022 to Rs 3,299 crore for the nine month period ended 31 December 2023 registering a growth of 49.08%. Therefore, our non par share of Individual APE which was 9.45% for the nine month period ended 31 December 2022 has grown to 14.04% for the nine month period ended 31 December 2023.
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The insurance behemoth sold 1.25 crore policies in the individual segment during the nine months period ended 31 December 2023 registering de-growth of 2.59% from 1.28 crore policies sold in the same period last year.
For the nine months ended 31 December 2023, the persistency ratio on premium basis for the 13th month and 61st month were 78.00% and 62.40%, respectively. The comparable persistency ratios for the corresponding nine months ended 31 December 2022 were 77.61% and 62.73% respectively.
Meanwhile, the persistency ratio on number of policies basis for the 13th month and 61st month were 67.22% and 50.23%, respectively. The comparable persistency ratios for the corresponding period ended 31 December 2022 were 64.99% and 51.42% respectively. Therefore, the the persistency has improved both on premium and number of policies basis for 13th month.
LIC's assets under management (AUM) increased to Rs 49.66 lakh crore as on 31 December 2023 as compared to Rs 44.34 crore on 31 December 2022 registering a growth of 11.98% year on year.
The yield on investments on policyholders funds excluding unrealized gains was 9.14% for 9M FY24 as against 8.58% 9M FY23.
The Solvency Ratio as on 31 December 2023 improved to 1.93 as against 1.85 on 31 December 2022.
The value of new business (VNB) for 9M FY24 was Rs 5,938 crore, up 8.40% as compared to Rs 5,478 crore for the nine months ended 31 December 2022. The net VNB margin for 9M FY24 was 16.6% as compared to 14.6% recorded in 9M FY23.
Meanwhile, the companys board has declared interim dividend of Rs 4 per share for financial year 2023-2024. Record date will be 21 February 2024.
Further, the board accorded approval to the proposal of the corporation to subscribe to the Memorandum jointly with one or more entities, of a Section 8 company proposed to be incorporated for providing a one stop electronic platform for the life, health and general insurance needs.
The company will subscribe 10,000 equity shares for cash at par, not exceeding 8.3% of the initial issued and subscribed share capital in the first tranche. In second tranche, the company will subscribe upto such additional equity share(s) for cash at par, not exceeding 2% of the issued and subscribed share capital.
Siddhartha Mohanty, chairperson, LIC, said, Our consistent and focused approach towards diversifying and changing our product mix is now yielding results at a faster pace. The same is evident in the rise in the share of Non Par business on APE basis to 14.04% of our total individual business for the first nine months of FY 2024. The fact that this is also accompanied by 200 bps increase in the VNB margin levels to 16.6% is an indicator that our strategic interventions are delivering in the manner that we envisaged.
We will relentlessly pursue our targeted product and channel mix with the support of all our employees, agency force and channel partners. We are committed to developing new products designed to meet the evolving needs of our customers. With our digital transformation project underway, we are confident of making significant improvements in our business processes.
LIC has been providing life insurance in India for more than 65 years and is the largest life insurer in the country.
Shares of Life Insurance Corporation of India declined 1.43% to Rs 1090.40 on the BSE. It also hit an all- time high at Rs 1,175 in intraday today.
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