State-run insurer LIC reported a surge in its net profit, clocking a 49 per cent increase to Rs 9,444 crore for the third quarter (Q3) ended in December 2023. According to regulatory filings, the nation’s largest insurer had attained a net profit of Rs 6,334 crore during the corresponding period the prior year.
In the third quarter of the current fiscal, LIC witnessed a notable rise in net premium income, reaching Rs 1,17,017 crore compared to Rs 1,11,788 crore in the same period a year earlier. The insurer’s total income for the latest December quarter climbed to Rs 2,12,447 crore, marking an increase from Rs 1,96,891 crore in the year-ago period.
In a disclosure to the stock exchange, LIC indicated a 4.67 per cent growth in net premium income to Rs 1.17 lakh crore for the quarter under review, up from Rs 1.11 lakh crore in the corresponding period last year.
The insurer on Thursday declared an interim dividend of Rs 4 per share.
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The total annual premium equivalent (APE), a key measure for gauging new business sales growth, saw an escalation to Rs 13,163 crore from Rs 12,370 crore in the preceding year. Moreover, the value of new business surged to Rs 2,634 crore as opposed to Rs 1,801 crore previously.
LIC’s gross non-performing assets (GNPAs) notably decreased to 2.15 per cent from 5.02 per cent in the prior year. The solvency ratio of the insurer also showed improvement, standing at 1.93 per cent compared to 1.85 per cent in the corresponding quarter of the previous year.
As of December 2023, the Assets Under Management (AUM) surged to Rs. 49.66 lakh crore, reflecting an 11.98 per cent increase year-on-year compared to Rs. 44.34 lakh crore recorded on December 31st, 2022.
Shares of LIC closed at Rs 1,106.25 apiece, up by 5.86 per cent on the BSE, on Thursday.