The Government of India, being the largest shareholder in Life Insurance Corporation (LIC), will receive a dividend of Rs 3,662 crore following LIC’s declaration of an interim dividend of Rs 6 per share. LIC reported a net profit of Rs 13,782 crore for the quarter ending March 31, 2024, marking a 4.5 percent increase compared to the same period last year. Here are the key financial highlights and strategic insights from LIC’s recent performance:
Financial Performance Overview
- Net Profit: LIC reported a net profit of Rs 13,782 crore for the quarter, up by 4.5 percent from the previous year.
- Dividend Declaration: An interim dividend of Rs 6 per share was declared, resulting in a Rs 3,662 crore dividend for the government.
Asset Quality and Business Growth
- Asset Quality Improvement: LIC’s gross non-performing asset (GNPA) decreased to 2.01 percent from 2.56 percent in the previous year.
- Business Growth: Value of New Business (VNB) increased by 4.66 percent to Rs 9,583 crore, with a VNB margin increase of 60 bps to 16.8 percent.
Individual Business Performance
- Non-Par APE Growth: Non-par Annualised Premium Equivalent (APE) share within individual businesses grew by 9.43 percent, reaching 18.32 percent.
- Premium Income: Total Premium Income for the year ended March 31, 2024, reached Rs 4,75,070 crore.
Wage Revision Impact and Expense Management
- Expense of Management: EoM increased by nearly 15 percent due to wage revision, reaching Rs 24,709.05 crore.
- Additional Pension Liability: EoM regarding additional pension liability stood at Rs 6,306.29 crore.
Strategic Interventions and Market Share
- Market Share Leadership: LIC maintains its position as the market leader with an overall market share of 58.87 percent.
- Strategic Focus: LIC increased its share of non-participatory products in the individual segment, aiming to maximize market share across categories.
Financial Health and Solvency
- Net Income from Investments: Increased by 24.43 percent year-on-year to Rs 84,425.45 crore in Q4.
- Solvency Ratio: Improved to 198 percent compared to 187 percent last year, indicating strong financial health.