LIC Q1 Results: Profit surges multifold to Rs 9,544 crore

economictimes.indiatimes.com:

LIC) on Thursday reported that its standalone net profit for the quarter eneded June 2023 rose multifold to Rs 9,544 crore. The same stood at Rs 683 crore in the same quarter of last year. The net premium income, meanwhile, was flat Rs 98,363 crore in the reporting quarter.

It was Rs 98,351 crore in the year-ago period. On a sequential basis, net profit fell 29% from Rs 13,428 crore reported in the previous quarter. The net premium income dropped 25% quarter-on-quarter.

Income from investments jumped 30% to Rs 90,309 crore in the quarter under review, compared with Rs 69,571 crore in the corresponding quarter of previous fiscal. Other income during the quarter stood at Rs 75 crore, down nearly 53% from Rs 160 crore a year ago. The first year premium dipped 8% during the first quarter to Rs 6,811 crore as against Rs 7,429 crore in the same period of last year.

LIC has reported a profit before tax of Rs 9,634 crore in the June quarter, which too jumped multiple times from just Rs 799 crore reported in the year-ago period. The insurer's solvency ratio stood at 1.89 in the April-June period, as against 1.87 in the last-year period and 1.88 in the preceding March quarter. The yield of investments (on policyholders fund) without unrealised gains stood at 8.78% as of June, as compared to 6.85% in the previous quarter and 7.74% in the same quarter of last year.

The 13th month persistency ratio at the end of first quarter came in at 75.10%, as against 70.16% in the last quarter. The same stood at 75.75% as of June 2022. On Thursday, ahead of the results, LIC's shares closed 0.36% lower at Rs 641.60 on NSE.