LIC Q1 results FY27: State-run insurance giant Life Insurance Corporation of India (LIC) had reported a decent financial performance for the quarter, with net profit rising 22.8 per cent YoY to Rs 13,492 crore, compared with Rs 10,987 crore in the corresponding period last year.
The insurer’s net premium income increased 6.8 per cent YoY to Rs 1.27 lakh crore, up from Rs 1.19 lakh crore a year ago, supported by healthy growth in individual new business and improved operating metrics.
LIC reported a sharp improvement in its Value of New Business (VNB), which rose 61.3 per cent YoY to Rs 3,136 crore, compared with Rs 1,944 crore in the year-ago period.
The company’s Annual Premium Equivalent (APE) increased 8.2 per cent YoY to Rs 13,692 crore, while the VNB margin expanded significantly to 22.9 per cent, from 15.4 per cent in the corresponding quarter last year.
LIC’s individual new business premium income registered a 14.48 per cent YoY growth, reaching Rs 14,351 crore during the quarter.
The insurer also reported a 61-month premium persistency ratio of 61.2 per cent, while the 61-month persistency ratio based on the number of policies stood at 48.74 per cent, indicating continued policy retention over the long term.
The insurer’s solvency ratio, a key measure of financial strength, improved to 2.42, compared with 2.17 in the corresponding period last year.
Meanwhile, Assets Under Management (AUM) grew 4.10 per cent YoY to Rs 59.39 lakh crore, reflecting continued expansion in the company’s investment portfolio.
LIC reported an overall expense ratio of 10.63 per cent, compared with 10.47 per cent in the year-ago period, indicating a marginal increase in operating expenses during the quarter.
During the session, the stock touches a high of Rs 468.30, marking its 52-week all-time high. The stock’s 52-week low stands at Rs 361, while the company’s total market capitalisation is around Rs 4,90,250.57 crore.
The Government of India currently holds 96.5 per cent of LIC after diluting a 3.5 per cent stake through the insurer’s landmark Rs 21,000-crore initial public offering (IPO) in May 2022, India’s largest IPO to date. Under the Securities and Exchange Board of India (SEBI) norms, listed companies are required to maintain a minimum public shareholding of 25 per cent.
(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
Shahnaz writes on a wide range of topics, including business, social issues, politics, environment, lifestyle and gender. She has previously wrote long-form content covering a wide range of topics, including politics, policies, and more. Additionally, she monitored wires services, social media, and local news outlets for breaking news and relevant stories. Also, she honed her skills in short-form writing, delivering accurate and concise content in a time-bound manner, from breaking news to engaging updates and latest developments on the respective topics. She holds a PG Diploma in Media Studies: Film and Television, with a master’s degree in Journalism and Mass Communication: Research from the University of Calcutta. With over 5 years of experience in journalism, including ground reporting, desk, coordination and copywriting, she excels in both arenas – desk and field. She has covered the West Bengal Assembly Elections 2021 and Lok Sabha Elections 2019 and reported on several news stories from West Bengal. She has extensively covered the TMC beat from 2018 to 2021. Apart from work, Shahnaz likes cooking, watching movies and reading books. She also loves travelling.
