Breaking Records: LIC's Q4 Performance Amazes with Quadrupled Profits and Dividend Bonanza

Get the latest update on LIC's Q4 results! Discover how the net profit quadrupled, and a Rs 3 per share dividend was declared. Don't miss out!

LIC Q4 Results
  • Income from renewal premium increased by 6.8%

  • LIC's embedded value rose by 7.5% YoY

  • LIC's solvency ratio increased slightly to 1.87%

  • Income from investments increased slightly to Rs 67,846 crore

  • LIC's net profit for Jan-Mar '23 increased by 466.2%

In a remarkable turn of events, Life Insurance Corporation of India (LIC), the renowned insurance giant, has announced its impressive Q4 results for the fiscal year. The net profit of LIC has quadrupled compared to the previous year, marking a substantial leap in financial performance. Moreover, amidst this remarkable achievement, LIC has declared a dividend of Rs 3 per share, further demonstrating its commitment to rewarding its shareholders. However, despite these positive developments, the LIC share price has faced challenges, experiencing a decline of 15% in 2023 and over 26% in the past year. Let's delve deeper into the details of LIC's Q4 results.

Understanding LIC Q4 results

Income from net premium:

  • LIC's net premium income for the March quarter fell by 8.3% YoY to Rs 1,32,000 crores due to a decline in First Year and Single Premium

  • In the Jan-Mar '23 period, the income from renewal premium increased by 6.8% from the previous year to reach Rs 76,328.3 crores

  • The income from Single Premium declined by 25.7% YoY to Rs 43,252 crores, and the income from First Year Premium decreased by 12.3% to Rs 12,852 crores

Embedded value of LIC

LIC's embedded value, a key metric to measure the value of the insurance business, rose by 7.5% YoY to reach Rs 5,82,243 crores at the end of March. It is calculated by estimating the future profits of an insurance business.

The solvency ratio of LIC

LIC's solvency ratio, which measures its financial strength and ability to meet policyholder obligations, increased slightly to 1.87% at the end of the March quarter from 1.85% the previous year.

Income from investments

The income from investments increased slightly to Rs 67,846 crore during the January-March period, compared to Rs 67,498 crore in the same period last year.

Net commission of LIC

LIC's net commission for the period of January to March 2023 was Rs 8,428.5 crores, indicating a 5.4% increase from the previous year.

Assets under management of LIC

At the end of the March quarter, LIC's assets under management (AUM) amounted to Rs 43.97 lakh crores, reflecting a 7.7% increase from the previous year.

Read an article: LIC share price is down more than 30%: Should investors sell, hold, or buy more?

Total income of LIC

The total income in the March quarter decreased to Rs 2,01,022 crore from Rs 2,15,487 crore in Q4FY22.

LIC dividend

During the quarter, LIC announced a dividend (Rs 3 per share with a face value of Rs. 10 each).

Net profits of LIC

  • LIC's profits for the period of January to March 2023 increased by an impressive 466.2% from the previous year, reaching Rs 13,427.8 crores
  • LIC's net profit for the entire financial year 2022-23 increased significantly to Rs 35,997 crore from Rs 4,125 crore in FY22

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Conclusion

LIC's Q4 results were positive. While net premium income fell, its net profit, embedded value, solvency ratio, income from investments, net commission, and assets under management all increased. This suggests that the LIC is in a strong financial position and is well-positioned to continue growing in the future. 

Disclaimer: This article is intended for general information purposes only and should not be construed as investment or tax or legal advice. You should separately obtain independent advice when making decisions in these areas.

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