LIC announces impressive growth in profit after tax for Q3FY24, reaching Rs 26,913cr
The Board of Directors of Life Insurance Corporation of India (LIC) unveiled the standalone and consolidated financial results for the nine months ending December 31st, 2023, marking a significant phase in the company’s performance trajectory. The Profit After Tax (PAT) for this period showcased a remarkable increase to Rs. 26,913 crore, bolstered by an amount of Rs.21,461 crore (Net of Tax) related to accretions on the available solvency margin. This growth highlights LIC’s robust financial health and strategic planning.
Despite challenging market conditions, LIC has sustained its dominant position in the Indian life insurance sector, with a notable overall market share of 58.90%. This leadership is evident across individual and group business segments, demonstrating LIC’s comprehensive approach to catering to diverse insurance needs.
The Total Premium Income for the nine-month period slightly dipped to Rs. 3,22,776 crore, from Rs. 3,42,244 crore in the previous year. However, the Total Individual Business Premium witnessed a growth, underscoring LIC’s strength in maintaining customer trust and expanding its portfolio. The company’s strategic product mix and channel diversification have been pivotal in this growth, especially in the non-par segment, which saw a significant 49.08% increase.
Life Insurance Corporation of India Leads Market Share with Strategic Focus on Green Energy
LIC’s commitment to sustainability and innovation is further evidenced by its investments in green energy sources, including a planned Waste Heat Recovery System (WHRS) at Ramasamy Raja Nagar plant, aiming to augment its WHRS capacity to 53 MW by FY25. This initiative, coupled with LIC’s windfarms’ capacity of 166 MW, underscores the corporation’s dedication to reducing its environmental footprint and embracing renewable energy.
The company’s operational efficiency and financial metrics, such as an improved solvency ratio and persistency ratios, reflect LIC’s strategic focus on value accretion and customer-centric product offerings. The digital transformation efforts underway promise to revolutionize LIC’s business processes, enhancing service delivery and customer satisfaction.
In conclusion, LIC’s Q3FY24 results not only highlight its financial robustness but also its strategic pivot towards a more sustainable, digitalized, and customer-focused future. As the insurance giant continues to adapt and innovate, its journey represents a valuable case study in balancing growth with responsibility and foresight.