Impact of wage revision reduces LIC’s Q4 net profit: The biggest insurer in the nation, Life Insurance Corporation of India (LIC), announced on Monday that its standalone profit after taxes increased by a little 2.5 percent to Rs 13,762 crore for the quarter that ended in March 2024 from Rs 13,427 crore for the same period the previous year.
For FY 2023–2024, the LIC board recommended a final dividend of Rs 6 per share. An interim dividend of Rs 4 was declared earlier in the year. The impact of pay revision resulted in a flat profit for the quarter.
Profit after tax for the fiscal year that concluded on March 31, 2024, was Rs 40,676 crore, up from Rs 36,397 crore in FY2023.
According to LIC, the transfer of funds related to the accretion on the available solvency margin from non-participating policyholders’ accounts to shareholders’ accounts was the subject of an accounting policy adjustment in September 2022.
As a result, it transferred a total of Rs 29,518.75 crore (net of tax) in FY 2023–24 as opposed to Rs 27,240.75 crore in FY 2022–2023—the latter of which comprised Rs 4,542.31 crore for the quarter that concluded on March 31, 2022.
Our percentage of subpar business has increased by more than twofold in each of our different businesses. We now want to concentrate our strategic efforts in order to increase our market share in all categories. As indicated, we will continue to maintain a laser-like focus on a number of factors that produce superior value for all parties involved, according to LIC Chairperson Siddhartha Mohanty.
According to IRDAI, LIC is still the market leader in the Indian life insurance industry by market share, with an overall market share of 58.87 percent, as determined by first year premium income (FYPI). LIC held a market share of 72.3% in group business and 38.44% in individual business as of the year that ended in March 2024.
LIC invested a total of Rs 1,30,000 crore in stocks and Rs 78,000 crore in corporate bonds during the year.
Compared to Rs 4,74,005 crore in FY2023, its total premium income for FY2024 was Rs 4,75,070 crore. From Rs 2,92,763 crore in FY2023 to Rs 3,03,768 crore in total individual business premium.
Total premium income for the group business was Rs 1,71,302 crore as opposed to Rs 1,81,242 crore.
Over the course of the year, LIC sold 2,03,92,973 in the individual sector.
The Value of New Business (VNB) increased by 4.66 percent to Rs 9,583 crore in FY2024 from Rs 9,156 crore in FY2023. As of March 31, 2024, the solvency ratio—a gauge of capital adequacy—rose to 1.98 from 1.87 on the previous day.
According to Mohanty, there are significant projects pertaining to digital transformation and distribution channels under progress.
We have faith that all of our staff members, agents, and channel partners are totally dedicated to reaching these goals. We anticipate that this year will bring our topline growth trajectory back into focus,” he said.
On the BSE, LIC’s shares closed 0.58 percent higher at Rs 1,035.8 a share.
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