Now Reading: LIC Q1 Profit Rises 23% to Rs 13,492 Crore
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LIC Q1 Profit Rises 23% to Rs 13,492 Crore
Life Insurance Corporation of India reported a standalone net profit of Rs 13,492 crore for the June quarter, up 22.8% from a year earlier. Total premium income rose 6.8% to Rs 1,27,250…
The Story in Brief
Life Insurance Corporation of India reported a standalone net profit of Rs 13,492 crore for the June quarter, up 22.8% from a year earlier. Total premium income rose 6.8% to Rs 1,27,250 crore, while Value of New Business climbed 61.3% to Rs 3,136 crore. The net VNB margin widened to 22.9% from 15.4%.
LIC sold 31,02,281 individual policies, up 2.06%, and its assets under management rose 4.1% to Rs 59.39 lakh crore. Its solvency ratio improved to 2.42. LIC retained a 60.10% first-year premium market share, including 38.89% in individual business and 70.90% in group business. The Hindu reports that the government’s recent offer for sale took its stake to 90%.
The Indian Opinion
The easy story is that a 23% profit jump ends LIC’s valuation problem. The opposite claim, that its size alone guarantees future growth, is just as lazy. Better product mix and stronger VNB matter, but competition, market-linked business and policyholder demand will test whether gains last. The useful markers are the next VNB margin, non-par share and premium growth.
Sources (3): livemint.com, thehindu.com, bfsi.economictimes.indiatimes.com
This story was synthesised by AI from the 3 sources linked above.
Updated: this story now draws on 3 sources.
