LIC Q1 Result: PAT jumps manifold to ₹683 cr, premium income up 20%

Although, LIC Net profit registered a decline of 71.20% 2,371.55 crore in the previous quarter. Further, the standalone total premium has come down by 31.58% 1,43,745.91 crore in the fourth quarter of FY22.

During the quarter, LIC’s overall Market The share of first year premium income (as per IRDAI) stood at 65.42% – down from the market share of 67.52% in Q1 FY22. However, the latest quarter’s market share is higher than the overall share of 63.25% for the full fiscal year 2012.

Also, individual first year premium income (as per IRDAI) had a market share of 43.86%, while group first year premium income share was 76.43% during the quarter under review.

On Annual Premium Basis (APE), LIC’s total premium was 10,270 crore in Q1FY23 as per regulatory filings. Of the total, 62.80% (approx.) 6,450 crore) by individual business and accounted for 37.20% (approx. 3,819 crore) by group business. Within the individual business, Par products accounted for 92.25% on an APE basis and the remaining 7.75% was attributable to non-par products in Q1FY23.

Further, LIC said, “There has been an improvement in firmness across the board on both premium and policy basis as compared to the quarter ended June 30, 2021.”

In Q1FY23, the continuation ratio of the insurer on the basis of premiums for 13th month, 25th month, 37th month, 49th month and 61st month was 75.75%, 67.78%, 64.34%, 60.82 and 58.99% respectively. The comparable continuity ratios for the same quarter ended June 30, 2021 were 72.49%, 66.53.3%, 62.62% and 59.87, 56% respectively.

Whereas the continuation ratio based on the number of policies for 13th month, 25th month, 37th month, 49th month and 61st month stood at 63.85%, 56.04%, 51.71%, 48.96% and 47.51% respectively in Q1 FY23 . This equated to persistence ratios of 61.26%, 53.94.9%, 50.58%, 48.22, and 44.87%, respectively, in Q1FY22.

Meanwhile, the return on investment on policyholders’ funds excluding unrealized gains was 7.74% in Q1FY23, as against 8.39% in Q1FY22.

In terms of asset quality, LIC’s net NPAs in the policyholder’s fund come down 9 crore during Q1FY23 as compared to a massive 194 crore in Q1FY22. With this, LIC’s net NPAs were at zero level in the first quarter of the current financial year.

The Gross NPA of the insurer has also improved as compared to 5.84% in Q1FY23 7.77% in Q1 of last fiscal and 6.03% in Q4FY22. In terms of value, the gross NPA of the company was 26,619.66 crores reduced from Rs. 34,884.80 crore in Q1FY22 and 27,087.11 crore in Q4FY22.

On Gross NPAs, LIC has made NPA provisions 26,611 crore in the June 2022 quarter.

Meanwhile, the solvency ratio stood at 188.54% in the first quarter of this fiscal, as against 173.34% in Q1FY22.

Further, the Value of New Business (VNB) of LIC on a gross basis was: 1,861 crore in Q1FY23, while VNB margin on a net basis stood at 13.6% during the quarter.

On segment-wise performance, the gross VNB of the individual business was 1,277 crore with a margin of 19.80% in Q1FY23. and in the group business, the gross VNB was 583 crores with a margin of 15.26%.

As on June 30, 2022, Asset Under Management (AUM) arrives at 41.02 lakh crore as compared to 38.13 lakh crore as on 30th June, 2021 – registering a growth of 7.57%.

As at the end of June 2022 quarter, LIC had agency strength of 1.33 million which is slightly lower than 1.34 million in Q1FY22. LIC said, the percentage of our agents working in rural areas is 48% while the remaining 52% work in urban areas.

MR Kumar, Chairman, LIC said, “As the COVID situation normalises, we are witnessing a huge activity on the ground, so we need to maintain our ‘feet on the road’ and continuous personal engagement with our customers. Getting closer to the model. While the growth numbers for the first quarter are very strong, as seen in comparison to the same quarter of FY 2021-22, we know that the first quarter of last year, FY 2021-22 was a very tough second of Covid was affected by the wave. ,

However, Kumar said, “The trajectory certainly seems to be upward and we are seeing an increase in business volume as evident in our market share from January 2022 till date. Finally, we are happy to state that Now that LIC has been included in the list of Fortune 500 companies and ranks 98th in the list. With this ranking, LIC is the top ranked Indian company in the Fortune 500 list.

on BSE. LIC shares closed 682.15 each flat as compared to the previous close. The market cap of the company is approx. 4,31,459.72 crore.

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