LIC Q1 Results: Net profit rises multi-fold on higher income on investments

Shares of LIC on August 10 closed at Rs 641.60, down by 0.36 percent over the last closing price.

Life Insurance Corporation of India on August 10 reported a 1,299 percent surge in net profit at Rs 9,543 crore for the quarter ended June 30, 2023 on higher income on investments. The insurance behemoth had reported a net profit of Rs 682 crore a year ago.

The gross non-performing asset (GNPA) as of June 30 stood at 2.48 percent as against 5.84 percent last year. Its net NPA was nil, same as last year.

Income from investments grew to Rs 90,309 crore in the April-June FY24 quarter from Rs 69,570 crore last year.

The company sold a total of 32,16,301 policies were sold in the individual segment during the quarter ended June 30th, 2023 as compared to 36,81,764 policies sold during the quarter ended June 30th, 2022.

Here, Siddhartha Mohanty, MD and CEO, LIC, said that the drop in the number of policies is largely due to change in the ticket size model. "We worked on changing our ticket size models and profitability factors. But we see the number of policies rising in the coming quarters," Mohanty said.

The insurance company's first-year premium, an indication of business growth, came in at a drop of 8.3 percent Rs 6810 crore for the quarter compared with Rs 7429 crore a year ago.

Net premium income was Rs 98,362 crore, compared with Rs 98,351 crore in the year-ago period.

The company's transfer of funds from shareholders' accounts drastically decreased to Rs 1.48 crore from Rs 799 crore.

The shares of LIC closed at Rs 641.60, down by 0.36 percent over the last closing price.