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LIC's Q4 net profit more than doubles to Rs 13,191 billion

The world's largest insurer, LIC, said on Wednesday that its consolidated net profit for the fourth quarter ending March 2023 increased by more than five times, to Rs 13,191 crore.

In the same quarter a year before, the insurance had made a profit of Rs 2,409 crore.

However, LIC said in a regulatory filing that the insurer's overall revenue for the March quarter fell to Rs 2,01,022 crore from Rs 2,15,487 crore during the same period of the previous fiscal.

Additionally, LIC's first-year premium revenue decreased to Rs 12,852 crore from Rs 14,663 crore in the same period the year before.

While the single premium fell to Rs 43,252 crore from Rs 58,251 crore, the revenue from renewal premiums increased to Rs 76,328 crore during the reporting period from Rs 71,473 crore the previous year.

LIC reported a multi-fold increase in net profit for the full fiscal year 2022–2023, going from Rs 4,125 crore to Rs 35,997 crore.

A rise in the bottom line to Rs 15,952 crore in the second quarter contributed to the increase in yearly profit for FY23. It was brought on by the end of September transfer of Rs. 15.03 lakh crore to shareholder accounts.

For the fiscal year that ended March 31, 2023, the board of LIC has proposed a final dividend of Rs 3 per equity share having a face value of Rs 10 each.

The solvency ratio, which compares an insurance company's cash flow to the amount it owes for total life cover, climbed from 1.85 percent at the end of the previous fiscal year to 1.87 percent as of March 31, 2023.

Gross non-performing assets (NPAs) of the insurer decreased from 6.03 percent at the end of March 2022 to 2.56% now.

In absolute terms, it significantly decreased from Rs 27,087 crore at the end of the previous financial year to Rs 12,031 crore. At the end of March 2022, LIC reduced its net NPAs from 0.04 percent to zero.

On the BSE, LIC shares ended the day 0.61 percent higher at Rs. 593.55 a share.

The government collected Rs 20,557 crore last year by selling a portion of its 3.5% interest in LIC via the largest IPO in the history of the nation.

In comparison to the issue price of Rs 949 per share, LIC shares were listed on the BSE at a discount of 8.62%, or Rs 867.20 per share.

Since the shares were listed, investors have lost close to Rs 2.5 lakh crore.

Through the IPO, the government sold more over 22.13 billion shares, or 3.5% of LIC. The issue's price range was Rs 902–949 per share. On May 12, 2022, however, shares were distributed to investors at the apex of the price range.

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