LIC reported a net profit of Rs 15,952 crore for the quarter ended September (Q2FY23).
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Move to diversification
This is a manifold increase from Rs 1,433 crore in the corresponding period last year.
“The results signify our gradual and consistent move towards diversifying our product mix aimed at increasing the non par business share,” said M.R. Kumar, chairperson, LIC.
“ In the Individual business, on an APE basis, the share of non par business has increased to 8.99% for the half year ended September 30th, 2022, as against 7.12% for full year ended March 31st, 2022.”
In the June quarter it reported a net profit of just Rs 682.9 crore.
Where does Premium stand?
First-year premium came in at Rs 9,124.7 crore for the quarter compared with Rs 8198.30 crore a year ago.
This is an important metric since it is an indication of business growth.
Net premium income was Rs 1.32 lakh crore, compared with Rs 1.04 lakh crore in the year-ago period.
“The results signify our gradual and consistent move towards diversifying our product mix aimed at increasing the non par business share,” said M.R. Kumar, chairperson, LIC.
Non par business
In the Individual business, on an APE basis, the share of non par business has increased to 8.99% for the half year ended September 30th, 2022, as against 7.12% for full year ended March 31st, 2022.”
It was Rs 1,04,913.92 crore in the same period a year ago.
Days before the quarterly results were released, there was plenty of speculation that the state-run company was planning to pay dividends or issue bonus shares to shareholders.
On October 31 such reports led to LIC shares rallying by over 2.5 percent in early trade.
Other financials
The scrip closed at Rs 628 at the BSE on November 11, which was nearly 1.17 percent higher as against the previous day’s close.
The net premium income of LIC was Rs 1.3 lakh crore during Q2 compared with Rs1.04 lakh crore a year ago, a growth of 26.61 per cent.
Expenses of management have shot up to 18.25 per cent from 14.92 per cent a year-ago.
Stock going down
The stock has gained momentum over the past few days.
However, it hasn’t yet reached the value held at the time of the company’s historic initial IPO.
It has seen its stock tumble over 28% from the listing price of 872 rupees.
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