LIC’s Q4 PAT rises 5.6 times on year to ₹13,428 crore

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Life insurance company of India (LIC) recorded a 5.6-fold increase in its net profit for the fourth quarter of FY23 to ₹13,428 crore as compared to ₹2,372 crore in the corresponding quarter of the previous year. For FY23, profit after tax was lower by 10 per cent at INR 36,397 crore.

The fourth quarter profitability was largely driven by gain made on transfer from policyholder accounts, which rose to ₹13,416 crore in the fourth quarter from ₹5,538 crore in the previous year period. On the other hand, transfer to policyholders’ accounts fell significantly to Rs. 94 crore from Rs. 3,266 crore in the previous year.

Investment income under shareholders’ accounts was Rs. 571 crore (Rs. 82 crore). Total income from investments increased slightly to Rs.67,846 crore from Rs.67,498 crore in the fourth quarter of FY22.

Premium net income decreased by 8 per cent on a yearly basis to ₹1.3-lakh crores for the quarter from ₹1.4-lakh crores. The first year premium was at ₹12,811 crore – down 12 per cent from ₹14,614 crore a year earlier. Net commission for the quarter increased by 5 per cent to Rs.8,428 crore.

solvency ratio

The LIC’s 13th-month Consistency Rate, a measure of adherence to customers, was marginally down to 70.2 percent from 70.9 percent in the prior quarter but was better than the 69.2 percent at the end of fiscal ’22.

The life insurer had a solvency ratio of 1.87 times, which is an improvement from the solvency ratio of 1.85 in the December and March quarters.

The LIC Board of Directors has recommended a final dividend of ₹3 per share for the fiscal year 23.