INSUBCONTINENT EXCLUSIVE:
State-owned Life Insurance Corporation (LIC) reported a manifold increase in its net earnings in the December quarter (Q3) of fiscal year
2022-23 (FY23), helped by a transfer of Rs 5,670 crore from non-participatory to shareholders accounts
Its net revenue in Q3 stood at Rs 6,334.19 crore, compared with Rs 234.91 crore in the year-ago period.
In the nine-month duration
(April-December FY23), the corporations revenues skyrocketed to Rs 22,970 crore, compared with Rs 1,672 crore a year ago
The huge jump was since of the transfer of Rs 19,941 crore to shareholder accounts over the last 4 quarters.
LIC reported a net premium
earnings of Rs 1.11 trillion in Q3, up 14.51 percent year-on-year (YoY) from Rs 97,620.34 crore a year earlier, with the first-year premium
income increasing 11 per cent YoY to Rs 9,724.71 crore, renewal premium increasing 6 percent YoY to Rs 60,194.87 crore, and single premium
earnings leaping 30 per cent YoY to Rs 42,117.10 crore.
Worth of new service margin, a step of profitability of life insurance companies,
stood at 14.6 per cent for the nine months of FY23, which was the very same at the end of the September quarter (6MFY23), regardless of an
increase in the share of non-par business in its portfolio.
Within the non-par sector, there are different kinds of businesses
Non-par cost savings has a greater contribution to margins however that part of our organization has not grown, whereas unit-linked
strategies (ULIPs) have grown
For that reason, the total margin has actually not grown, said KR Ashok, executive director, actuarial, LIC.
Lately, we have actually
come out with lots of non-par items
We might see modifications in the non-par pail on a quarterly basis due to the fact that most of our representatives are getting used to
We require 1-2-year visibility before things take place as we want them to
Currently, we are concentrated on non-par products and we leave it to the customers regarding what they wish to purchase-- annuity, ULIP, or
term, stated MR Kumar, chairperson of LIC.
He stated LIC would reach 25 per cent margins much faster than its private sector rivals
We have come from 9 per cent to 14.6 per cent in barely any time, Kumar included.
LIC made an overall premium of Rs 37,545 crore on an APE
(annualised premium equivalent) basis for the 9 months ended December 31
Of this, Rs 23,419 crore was represented by the specific organization and Rs 14,126 crore by the group service
In the Individual organization, the share of non-participatory company increased to 9.45 percent for the period, compared to 7.12 per cent
in the whole of FY22.
Asked if LIC had actually minimized its direct exposure to Adani Group companies because of claims made by a US-based
short seller, the chairperson stated: We buy and hold for the long term
As of now, we do not prepare to do anything
We will take a view may be few years down the line
Our financial investment department has already reached out to them (Adani Group), Kumar said
LIC had previously said that it would aim to engage with the groups management and look for explanation on the report.
Last month, LIC
clarified that it has actually invested Rs 36,474.78 crore up until now in the group through both equity and debt
Total purchase value of equity, bought over many years, in the group business is Rs 30,127 crore
LICs exposure in the Adani group, as on date, is 0.975 per cent of LICs overall AUM at book value, the insurance company said.
Possessions
under management (AUM) increased to Rs 44.34 trillion as on December 31, 2022, compared to Rs 40.12 trillion in the year-ago duration,
signing up an increase of 10.5 per cent
Its shares closed 0.53 percent higher on the BSE on Thursday at Rs 613.35 each.
