- LIC's net profit rose 23% YoY to Rs 13,492 crore in Q1FY24
- Net premium income increased 7% YoY to Rs 1.27 lakh crore
- Value of New Business surged 61% YoY to Rs 3,136 crore
Life Insurance Corporation of India (LIC) reported a strong performance for the June quarter, with net profit rising 23% year-on-year, supported by healthy premium growth, a sharp improvement in new business profitability and higher investment income.
The country's largest life insurer posted a net profit of Rs 13,492 crore for the first quarter, compared with Rs 10,987 crore in the corresponding period last year.
Net premium income increased 7% year-on-year to Rs 1.27 lakh crore, while other income jumped to Rs 635 crore from Rs 130 crore a year ago. A key highlight of the quarter was the significant improvement in the insurer's Value of New Business (VNB), which surged 61% year-on-year to Rs 3,136 crore.
The VNB margin expanded 750 basis points to 22.9% from 15.4% in the year-ago period, reflecting improved product mix and stronger profitability from new business written during the quarter.
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LIC also reported robust growth in first-year premium income, which rose 22% year-on-year to Rs 9,217 crore, indicating healthy traction in new policy sales.
The insurer further strengthened its balance sheet during the quarter, with the solvency ratio improving to 2.42 from 2.17 a year earlier, remaining comfortably above the regulatory requirement.
On the persistency front, the 13th-month persistency ratio edged lower by 50 basis points to 70.4% from 70.9%, indicating a marginal decline in short-term policy renewals.
However, the longer-term 61st-month persistency ratio improved significantly by 300 basis points to 61.3% from 58.3%, highlighting better policy retention over the long term.
LIC Share Price Today
The results were announced after market close. LIC shares closed 1.39% lower at Rs 387.55 per share on Thursday. The shares have fallen 8.35% in one week and 9.68% in one month. The shares are down 9.11% year-to-date and 13.18% in the last one year.
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