LIC reports profit after tax of Rs 40,676cr for FY 2024
The board of directors of Life Insurance Corporation of India (LIC) has announced a significant financial performance for the year ending March 31st, 2024, with substantial growth in Profit After Tax (PAT) and strategic advancements in its product offerings.
LIC Financial Highlights and Strategic Growth
LIC reported a Profit After Tax of Rs. 40,676 crore for FY 2024, a notable increase from Rs. 36,397 crore in the previous year. This growth is attributed to a strategic change in accounting policies and a focused shift in the corporation’s product mix towards enhancing margins and doubling the share of Non-par business within the Individual business segment.
Dividend and Market Leadership
The Board recommended a final dividend of Rs. 6 per share, in addition to an interim dividend of Rs. 4 previously declared, totaling Rs. 10 per share for the fiscal year. LIC continues to dominate the Indian life insurance market, holding a total market share of 58.87%, with significant leads in both Individual and Group business sectors.
Enhanced Assets and Value of New Business
The Total Premium Income for the year stood at Rs. 4,75,070 crore, with the Assets Under Management (AUM) increasing by 16.48% to Rs. 51,21,887 crore. The Value of New Business (VNB) grew by 4.66% to Rs. 9,583 crore, with the VNB margin expanding by 60 basis points to 16.80%.
Future Outlook and Strategic Initiatives
Siddhartha Mohanty, Chairperson of LIC, outlined the company’s future focus: “During the last year we have focused on directional changes in our product mix and enhancing margins in the business. We are confident that our employees, agents, and our channel partners are fully committed to achieving these objectives. We look forward to this current year as the one in which our top-line growth trajectory will be back in focus.”
Expanding Digital and Distribution Channels
LIC is also investing in key initiatives related to digital transformation and expanding its distribution channels to maximize market share across categories and ensure superior value creation for all stakeholders.