Life Insurance Corporation (LIC) on Monday reported a standalone net profit of Rs 2,371.55 crore for the three months to March, a fall of 18% year-on-year.
The state-owned insurer exited FY22 with profits of Rs 4,043.12 crore, an increase of 39.4% over FY21. The insurer declared a dividend of Rs 1.50 per share.
Ahead of the results’ announcement, the LIC stock, which debuted on the exchanges on May 17, closed Monday’s session at Rs 837.05, up 1.89% over Friday’s close. Nonetheless, the scrip trades below its IPO offer price of Rs 949 per share.
LIC said in an exchange filing that the net premium income in the fourth quarter has risen by 18.2% to Rs 1.43 trillion. For FY22, however, the increase in the net premium income was only 6.1% at Rs 4.27 trillion.
The insurer’s solvency ratio improved to 1.85 for the March 2022 quarter from 1.76 a year ago. However, the 13th month persistency, a key parameter that measures the renewal of policies, fell to 69.24% at the end of March 2022 from 73.94% a year ago.
First-year premiums in Q4FY22 went up by 33.37% y-o-y to Rs 14,614.25 crore while renewal premiums rose by 5.49% y-o-y to Rs 71,157.89 crore. The state insurer’s market share, in terms of the first-year premium, stood at 63.25% at the end of March.
SBI Life Insurance had reported an increase in first-year premiums of 5.28% y-o-y in Q4FY22 to Rs 3,853.56 crore. At HDFC Life Insurance, first-year premiums grew 7.78% y-o-y to Rs 2,574.87 crore.
Single premiums at LIC saw a 34.20% y-o-y increase during the period under review to Rs 58,198.16 crore.
In the absence of a wide range of products, LIC has been yielding share in the individual policies segment. The growth in annualised premium equivalent (APE) has been 6-7% over the past five years, compared with 14% for private players.
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This article was originally posted here.
