LIC reports Profit after Tax of `16,635 crore in first half of FY23

Mumbai: The Board of Directors of Life Insurance Corporation of India (LIC) approved and adopted the standalone andreviewed consolidated financial results for the half year ending September 30, 2022.

For the half year ended September 30, 2022, LIC registered an increase of 23.87 per cent in the Total Premium Income at Rs 2,30,456 crore as compared to Rs 1,86,053 crore for the half year ended September 30 2021 during the previous year.

The Profit after Tax (PAT) for the half year ended September 30, 2022 was Rs 16,635 crore as compared to Rs 1,437 crore for the half year period ended September 30, 2021.The current period profit has increased due to transfer of an amount of Rs 14,271.80 crore (net of tax), pertaining to the accretions on the available solvency margin, from non par to shareholders account. The amount of Rs 14,271.80 crore comprises of Rs 5,580.72 crore for the quarter ended September 30, 2022 besides Rs 4,148.78 crore and Rs 4,542.31 crore for the preceding two quarters respectively.

The business momentum continues to be strong for LIC and as a result the overall market share by First Year Premium Income (as per IRDAI) increased to 68.25 per cent for the half year ended September 30 2022 as compared to full year market share of 63.25 per cent for FY 2021-22.

On an Annualised Premium Equivalent (APE) basis the total premium was Rs 25,228 crore for the six month period ended September 30,2022. Of this Rs 14,643 crore (58.04 per cent) was accounted for by the Individual Business and Rs 10,585 crore (41.96 per cent) by the Group Business. Within the Individual Business, the share of Par products APE basis was 91.01 per cent percent and balance 8.99 per cent percent was due to Non Par products.

A total of 83,59,029 policies were sold in the individual segment during the half year ended September 30, 2022 thereby registering an increase of 13.55 per cent over the similar six month period last year when 73,61,410 policies were sold.

For the half year ended September 30, 2022, the persistency ratio on premium basis for the 13 month and 61st month were 77.62 per cent and 62.77 per cent respectively. The comparable persistency ratios for the corresponding half year ending September 30, 2021 were 78.77 per cent and 60.57 per cent respectively for the half year ended September 30h, 2022, the persistency ratio on number of policies basis for the 13th month and 61st month were 65.21 per cent and 51.61 per cent respectively.

The comparable persistency ratios for the corresponding half year ended September 30, 2021 were 67.69 per cent and 49.38 per cent respectively. Therefore the persistency has improved both on premium and number of policies basis for the 61 month.

The Assets Under Management (AUM) increased to Rs 42,93,778 crore as on September 30, 2022 as compared to Rs 39,50,633 crore on September 30", 2021 registering an increase of 8.69 per cent year on year.

The operating expense ratio for the half year ended September 30, 2022 was 16.69 per cent as compared to 15.33 per cent for the half year ended September 30, 2021.

The Yield on Investments on policyholders funds excluding unrealized gains was 8.32 per cent for half year ended September 30, 2022 as against 8.62 per cent for half year ended September 30, 2021.

The Net NPA in the policyholders fund was Rs 12.72 crore as on September 30, 2022 as compared to Rs 191.56 crore as on September 30, 2021.

The Value of New Business (VNB) (Gross) for the six month period ended September 30, 2022 was 4,836 crore. The Gross VNB margins for the Individual and Group Business were 20.3 per cent and 17.6 per cent respectively. The Gross VNB of the Individual Business was Rs 2,974 crore and for Group business was Rs 1,862 crore for half year ended September 30, 2022. Within the Individual Business, the Par Business, Non Par Business (including Linked Business) had Gross VNB margins of 14.5 per cent and 79.5 per cent respectively.

The VNB margins for the half year ended September 30, 2022 are 14.6 per cent (Net) as compared to 9.3 per cent (Net) for half year ended September 30, 2021.