LIC posts PAT of `22,970 cr for 9 mnths ending in Dec FY23

Mumbai: For the nine months ending December 31, 2022, LIC registered an increase of 20.65 per cent in the Total Premium Income at Rs 3,42,244 crore as compared to Rs. 2,83,673 crore for the nine months ending December 31, 2021 during the previous year. The Profit after Tax (PAT) for the nine months ending December 31, 2022 was Rs 22,970 crore as compared to Rs.1,672 crore for the nine months ending December 31, 2021.

The current period profit has increased due to transfer of an amount of Rs.19,941.60 crore (net of tax), pertaining to the accretions on the available solvency margin, from non par to shareholders account. The amount of Rs19,941.60 crore comprises of Rs 5,669.79 crore for the quarter ended December 31st, 2022 besides Rs 5,580.72 crore, Rs 4,148.78 crore and Rs 4,542.31 crore for the preceding three 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) was 65.38 per cent for the nine month ended December 31, 2022 as compared to 61.40 per cent for the corresponding period last year.

On an Annualised Premium Equivalent (APE) basis the total premium was Rs 37,545 crore for the nine months ending December 31st, 2022. Of this Rs 23,419 crore (62.38 per cent) was accounted for by the Individual Business and Rs 14,126 crore (37.62 per cent) by the Group Business. Within the Individual Business, the share of Par products on APE basis was 90.55 per cent percent and balance 9.45 per cent percent was due to Non Par products.

During nine months ended December 31st, 2022, a total of 1.29 crore policies were sold in the individual segment, thereby registering an increase of 1.92 per cent over the nine months ending December 31st, 2021 when 1.26 crore policies were sold.

For the nine months ending December 31st, 2022, there was an improvement in persistency ratio on premium basis for both 13th month and 61st month at 77.61 per cent and 62.73 per cent respectively.

For the period ended December 31, 2021 the comparable persistency by premium for 13th and 61st month was 76.84 per cent and 61.91 per cent respectively. The persistency ratio on number of policies basis for the 13th month and 61st month were 64.99 per cent and 51.42 per cent respectively.

The comparable persistency ratios for the corresponding nine months ending December 31,2021 were 65.47 per cent and 50.85 per cent respectively.

The Assets Under Management (AUM) increased to Rs 44,34,940 crore as on December 31, 2022 as compared to Rs 40,12,172 crore on December 31, 2021 registering an increase of 10.54 per cent year on year.

The operating expense ratio for the nine months ending December 31, 2022 increased by 27 bps to 15.26 per cent as compared to 14.99 per cent for the nine months ending December 31, 2021.

The Value of New Business (VNB) (Gross) for the nine months ending December 31, 2022 was Rs 7,187 crore and the Gross VNB margin was 19.1 per cent while the net VNB margins for the nine months ending December 31, 2022 was 14.6 per cent.

The Gross VNB of the Individual Business was Rs 4,683 crore and for Group business was Rs 2,504 crore for nine months ending December 31, 2022. The Gross VNB margins for the Individual business and Group Business were 20 per cent and 17.7 per cent

respectively.