The results were announced after the market had closed. On the BSE, shares of Life Insurance Corporation Ltd. finished the day at Rs. 593.55, up Rs. 3.60 or 0.61 percent.
For the fourth quarter that ended on March 31, 2023, public sector insurer Life Insurance Corporation (LIC) announced a 466 percent year-over-year (YoY) increase in net profit at Rs 13,428 crore on Wednesday. According to LIC’s regulatory filing, the business reported a net profit of Rs 2,371 crore in the comparable period last year.
However, the insurer’s overall revenue for the March quarter decreased from Rs 2,15,487 crore in the same quarter of the previous fiscal to Rs 2,01,022 crore. Additionally, LIC’s first-year premium revenue decreased to Rs 12,852 crore from Rs 14,663 crore in the same period the year before.
While the single premium fell to Rs 43,252 crore from Rs 58,251 crore, the income from renewal premiums increased to Rs 76,328 crore during the reporting period from Rs 71,473 crore the previous year. LIC reported a multi-fold increase in net profit for the full fiscal year 2022–2023, going from Rs 4,125 crore to Rs 35,997 crore.
Annualized Premium Amount
The total premium for the year ended March 31, 2023 was Rs 56,682 crore on an Annualized Premium Equivalent (APE) basis, compared to Rs 50,390 crore for the year ended March 31, 2022, reflecting an increase of 12.49 percent year over year.
For FY 2023, the Individual Business accounted for 68.22% (Rs 38,667 crore) and the Group Business for 31.78% (Rs 18,015 crore). During FY 2023, the Individual Business APE increased by 8.70% year over year.
Additionally, on an APE basis, the share of par products and non-par products in the Individual business was 91.11 percent and 8.89 percent, respectively. The Group APE for FY2023, which was Rs 18,015 crore, increased by 21.57 percent over that of the year ended March 31, 2022, which was Rs 14,818 crore.
VNB
The Value of New Business (VNB) (Gross) for the fiscal year ended March 31, 2023 was Rs 11,553 crore, up from Rs 9,920 crore in the previous fiscal year ended March 31, 2022, reflecting a 16.46 percent growth. VNB margins are 16.2 percent (Net) for the fiscal year ending March 31, 2023, compared to 15.1 percent (Net) for the fiscal year ending March 31, 2022.
For the fiscal year ending March 31, 2023, the Individual business had a Gross VNB of Rs 7,571 crore and the Group business had a Gross VNB of Rs 3,982 crore. Individual and Group firms had gross VNB margins of 19.6 percent and 22.1 percent, respectively.
AUM
The Assets Under Management (AUM) grew by 7.65 percent year on year to Rs 43.97 lakh crore on March 31, 2023, from Rs 40.85 lakh crore on March 31, 2022. The Yield on Investments on policyholders’ money, excluding unrealised profits, was 8.29 percent for the fiscal year ending March 31, 2023, compared to 8.55 percent in the previous fiscal year.
The Solvency Ratio for the fiscal year ending March 31, 2023 is 1.87 (before taking into account the proposed final dividend of Rs 3 per share for FY23) and would be 1.86 (after taking into account the proposed final dividend for FY23) as compared to 1.85 for the fiscal year ending March 31, 2022.
For the fiscal year ending March 31, 2023, the persistency ratios for the 13th and 61st months were 64.28 percent and 49.86 percent, respectively. Comparable persistency ratios were 63.45 percent and 49.86 percent for the fiscal year ending March 31, 2022, respectively.
For the fiscal year ending March 31, 2023, the LIC board of directors has proposed a final dividend of Rs 3 per equity share with a face value of Rs 10 each.
