Chennai, Feb 9 (IANS): Asian life insurance giant Life Insurance Corporation of India (LIC) said it closed the nine months ending December 31, 2022 with a net profit of Rs 22,970 crore.
The top brass of LIC will be soon meeting the top management of Adani group.
According to LIC, for the nine months ending December 31, the company had logged a total premium of Rs 3,42,244 crore (Rs 2,83,673 crore in 9 months ending December 31, 2021) and a net profit of Rs 22,970 crore (Rs 1,672 crore).
The current period profit has increased due to transfer of an amount of Rs 19,941.60 crore (net of tax), pertaining to the accretions on the available solvency margin, from non par to shareholders account.
The amount of Rs 19,941.60 crore comprises Rs 5,669.79 crore for the quarter ended December 31, 2022 besides Rs 5,580.72 crore, Rs 4,148.78 crore, and Rs 4,542.31 crore for the preceding three quarters respectively, LIC said.
The business momentum continues to be strong for LIC and as a result the overall market share by First Year Premium Income (as per IRDAI) was 65.38 per cent for the nine month ended December 31, 2022 as compared to 61.40 per cent for the corresponding period last year.
On an Annualised Premium Equivalent (APE) basis, the total premium was Rs 37,545 crore for the nine months ending December 31, 2022, the company said.
Of this Rs 23,419 crore (62.38 per cent) was accounted for by the Individual Business and Rs 14,126 crore (37.62 per cent) by the Group Business.
Within the Individual Business, the share of par products on APE basis was 90.55 per cent and balance 9.45% per cent was due to non-par products.
During nine months ended December 31, 2022, a total of 1.29 crore policies were sold in the individual segment, thereby registering an increase of 1.92 per cent over the nine months ending December 31st, 2021 when 1.26 crore policies were sold.
For the nine months ending December 31, 2022, there was an improvement in persistency ratio on premium basis for both 13th month and 61st month at 77.61 per cent and 62.73 per cent, respectively.
The operating expense ratio for the nine months ending December 31, 2022 increased by 27 bps to 15.26 per cent as compared to 14.99 per cent for the nine months ending December 31, 2021.
"We continue to remain focussed on creating a portfolio mix to optimise value for all stakeholders, and in that context, increasing the proportion of non-par business in a consistent and profitable manner," Chairperson M.R.Kumar said.
According to Kumar, the LIC officials will be soon meeting the top management of Adani group to know what is happening and how they are managing the issues following the short sellers report alleging various malpractices.