The Government of India is set to receive a dividend of Rs 3,662 crore as the largest shareholder of Life Insurance Corporation (LIC) of India. LIC, the country’s largest insurer, declared an interim dividend of Rs 6 per share on May 27. The government holds a 96.5 percent stake in LIC, equivalent to 6,10,36,22,781 shares.
LIC reported a 2.5 percent year-on-year increase in net profit for the March quarter of the financial year 2023-24. The net profit amounted to Rs 13,762 crore, compared to Rs 13,421 crore in the same period of the previous year. The company also stated that its asset quality improved in the final quarter of FY24. In addition to the increase in net profit, LIC announced an interim dividend of Rs 6 per share.
LIC reported a gross non-performing asset (GNPA) ratio of 2.01 percent, which is an improvement from 2.56 percent in the year-ago period.
The value of new business (VNB) for LIC increased by 4.66 percent to Rs 9,583 crore, with a VNB margin increase of 60 basis points to 16.8 percent.
Within the individual business segment, the share of non-par Annualized Premium Equivalent (APE) grew by 9.43 percent to 18.32 percent. The Non-Par APE increased from Rs. 3,436 crore for the year ended March 31, 2023, to Rs 7,041 crore for the year ended March 31, 2024, indicating a growth of 105 percent. This means that on an APE basis, LIC’s non-par share of individual business increased from 8.89 percent in FY23 to 18 percent for the year ended March 31.
In terms of policies sold in the individual segments, LIC sold a total of 2.03 crore policies, slightly lower than the 2.04 crore policies sold in FY23.
LIC’s assets under management (AUM) increased to Rs 51.21 lakh crore as of March 2024, up from Rs 43.97 lakh crore on March 31, 2023, reflecting a year-on-year increase of 16.48 percent.
The solvency ratio of LIC for the current year stood at 1.98 percent, compared to 1.87 percent in the previous year.
