LIC reports incremental growth in Q1 FY 2023-24 financial results
Life Insurance Corporation of India (LIC) has announced its financial results for Q1 of FY 2023-24, noting a minor increase in its total premium income to Rs. 98,363 crore from Rs. 98,352 crore in Q1 2022.
Key Financial Highlights:
- Profit After Tax: LIC reported a Profit After Tax of Rs. 9,543.71 crore.
- APE Overview: Non-par Annualised Premium Equivalent (APE) grew by 21.6% to Rs. 608 crore.
- Individual Premium Stats: The total individual premium saw a 4.61% growth, reaching Rs. 62,773 crore.
- Efficiency Indicators: The overall expense ratio witnessed a drop from 14.59% to 12.85%.
- VNB Margin Insights: The Value of New Business (VNB) Margin (Net) experienced a minor rise from 13.6% to 13.7%.
- AUM Growth: LIC’s Assets Under Management (AUM) surged by 12.41% to a staggering Rs. 46.11 lakh crore.
- Persistency Improvement: Both the 13th and 61st month persistency on a premium basis improved.
Market-wise, LIC retained its leadership in the Indian life insurance domain, holding a 61.42% market share as of June 30th, 2023, albeit a decrease from 65.42% in the previous year.
LIC Q1 FY 2023-24 Results: Premium Income at Rs. 98,363 Crore. Photo courtesy of MattHartzell/Wikimedia Commons.
The breakdown of the Total Premium Income for Q1 2023 includes:
- Individual New Business Premium: Rs. 10,462 crore
- Individual Renewal Premium: Rs. 52,311 crore
- Group Business Premium: Rs. 35,590 crore
When comparing quarter-on-quarter, the total individual business premium grew by 4.61%, achieving Rs. 62,773 crore up from Rs. 60,007 crore in 2022.
Chairperson of LIC, Siddhartha Mohanty, remarked, “During the first quarter of this financial year, we have achieved an increase in our Non-Par product mix. Our efforts to improve persistency across cohorts are beginning to show results.” He emphasized LIC’s commitment to the “Insurance for all by 2047” objective and expressed gratitude to all stakeholders for their unwavering support.