Excelsior Correspondent
JAMMU, Aug 10: Life Insurance Corporation of India (LIC) today reported a multifold jump in its April-June quarter net profit to Rs 9,544 crore.
The state-run life insurance behemoth had a net profit of Rs 683 crore in the year-ago period. The total income increased to Rs 1,88,749 crore for the June quarter as against Rs 1,68,881 crore in the year-ago period, LIC said in a handout issued today.
“In terms of market share measured by the first-year premium income, LIC has maintained its leadership with a market share of 61.42 per cent, but down from 65.42 per cent in the 12 trailing months,” the Company said, adding, assets under management increased 12.41 per cent or Rs 5.09 lakh crore to Rs 46.11 lakh crore
Further, the solvency ratio stood at 1.89 as against 1.88, which is only marginally higher than the regulatory requirement of 1.5. New business premium declined 4.35 per cent to Rs 10,462 crore while individual renewal premium rose 6.61 per cent to Rs 52,311 crore and total individual premium rose 4.61 per cent to Rs 62,773 crore.
Total group business premium declined 7.19 per cent to Rs 35,590 crore keeping the total premium income flat at Rs 98,363 crore up by 1 bps from Rs 98,352 crore. On an annualised premium equivalent (APE) basis the total premium was Rs 9,532 crore, of this 62.42 per cent or Rs 5,950 crore was accounted for by individual business and 37.58 per cent or Rs 3,582 crore by the group business.
Within the individual business, the share of par products on APE basis was 89.78 per cent or worth Rs 5,342 crore and the balance 10.22 per cent or Rs 608 crore was due to non-par products. The non-par APE has increased from Rs 500 crore, up 21.6 per cent on-year. The non-par share of individual APE rose from 7.75 per cent in June 2022 to 10.22 per cent in June 2023.
The persistency ratios on premium basis improved with the 13th month and 61st month printing in at 78.37 per cent and 62.73 per cent respectively from 77.85 per cent and 62.43 per cent respectively. Similarly, the persistency ratios on number of policies for the 13th month and 61st month were 66.15 and 50.79 respectively, up 65.96, and 51.23 respectively.
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