2.3 C
Munich

LIC sees multifold increase in Q2 net profit at Rs 15,952 crore

Must read

[ad_1]


State-owned (LIC) reported a multifold increase in net profit during July–September (Q2) of FY23.


This is due to a change in its accounting policy, wherein it has transferred Rs 14,271.80 crore to the shareholders’ account from the non-participatory account.


Net profit in Q2 stood at Rs 15,952.49 crore, up 11 times from Rs 1,433.71 crore in the year-ago period. During the preceding quarter, the insurer had reported a net profit of Rs 682.88 crore.


“In accordance with a recent Irdai (Insurance Regulatory and Development Authority of India) letter and subsequent approval by the board of directors, the corporation has changed its accounting policy. It has transferred Rs 14,271.80 crore (net of tax) from non-par to shareholder’s account. Due to this, profit for the quarter and half year ended September 2022 has increased to that extent,” said on Friday.


It said, “The amount comprises Rs 5,580.71 crore for the quarter ended September, Rs 4, 148.77 crore for quarter ended June, and Rs 4,542.30 crore for quarter ended March.”


Ahead of its initial public offering (IPO), the insurer had bifurcated its policyholders’ fund into participatory and non-participatory funds. Non-participatory life insurance contracts are where no policy dividends are paid and the entire profit from non-par policies belongs to the shareholders.


has made provisions of Rs 11,543.75 crore during the July- September quarter towards employee retirement benefits. This is due to wage revision, which has become due from August 1.


The insurance behemoth reported a net premium income of Rs 1.32 trillion in Q2 of FY23, up 27 per cent year-on-year (YoY) from Rs 1.04 trillion in Q2 of FY22. Its first-year premium income rose 11 per cent YoY to Rs 9,125 crore while renewal premium was up 2 per cent to Rs 56,156 crore. Single premium income increased by 62 per cent YoY to Rs 66,901 crore.


Income from investments increased 9.89 per cent YoY to Rs 84,103.64 crore during Q2 of FY23. In the year-ago period, investment income was Rs 76,533.75 crore.


Business momentum for the corporation has been strong in FY23. As a result, it has gained market share on a first-year premium basis. LIC’s market share increased to 67.72 per cent as of October from 63.25 in FY22.


The yield on investments on policyholders’ funds, excluding unrealised gains, was 8.73 per cent for the quarter ended September 30, 2022. It was 8.64 per cent in the year-ago period and 7.74 per cent in the preceding quarter.


LIC’s gross non-performing asset (gross NPA) ratio declined 24 basis points over the preceding quarter and stood at 5.6 per cent at the end of the September quarter. It reported a net NPA of Rs 12.71 crore as of Q2.


In Q2, LIC’s persistency ratios on a premium basis for the 13th month, and 61st month were 70.52 per cent and 55.83 per cent, respectively.


In the preceding quarter, the 13th month and 61st month persistency ratios stood at 75.75 per cent and 58.99 per cent, respectively.


graph

[ad_2]

Source link

- Advertisement -spot_img

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -spot_img

Latest article