LIC profit grows multifold to 15,952 cr in H1

Hyderabad: Life Insurance Corporation of India (LIC) has reported a multi-fold growth in its profit after tax (PAT) at Rs 16,635 crore in the H1 (half-year ended September 30) of financial year 2022-23 as compared to Rs 1,437 crore in the same period previous fiscal.

LIC registered 23.87 per cent increase in the total premium income at Rs 2,30,456 crore in H1 FY23 as compared to Rs 1,86,053 crore during the corresponding period previous year. The current period profit has increased due to transfer of an amount of Rs 14,271.80 crore (net of tax), pertaining to the accretions on the available solvency margin, from non par to shareholders account.

The amount of Rs 14,271.80 crore comprises of Rs 5,580.72 crore for the Q2 (quarter ended September 30) FY23 besides Rs 4,148.78 crore and Rs 4,542.31 crore for the preceding two quarters respectively. The business momentum continues to be strong for LIC and as a result the overall market share by first year premium income increased to 68.25 per cent in H1 FY23 against 63.25 per cent in H1 FY22.

On an annualised premium equivalent (APE) basis the total premium was Rs 25,228 crore in H1 FY 23. Of this, Rs 14,643 crore (58.04 per cent) was accounted for by the individual business and Rs 10,585 crore (41.96 per cent) by the Group Business.

MR Kumar, Chairperson, LIC said: "The results signify our gradual and consistent move towards diversifying our product mix aimed at increasing the non par business share. In the individual business, on an APE basis, the share of non par business has increased to 8.99 per cent for the H1 FY23, as against 7.12 per cent for full fiscal year 2021-22. The same philosophy of diversification is visible in our distribution channel mix where the share of new business premium being sourced from banca and alternate channels has also increased. We are committed to doing our best for all stakeholders going forward."

A total of 83,59,029 policies were sold in the individual segment during H1 FY 23 thereby registering an increase of 13.55 per cent over the similar six month period previous fiscal when 73,61,410 policies were sold. For the H1 FY 23, the persistency ratio on premium basis for the 13th month and 61st month were 77.62 per cent and 62.77 per cent respectively.