- Date : 10/02/2023
- Read: 3 mins
LIC net profit surges and stock price increases.
LIC (Life Insurance Corporation of India) released the December quarter's financial result on Thursday. It witnessed a rise in its net profit in the third quarter to Rs. 8,334 crores. It allocated Rs. 5,670 crores to the shareholders' fund as there was an improvement in the premium Income, increasing its net worth. It posted an Rs. 235 crore profit at the same time last year.
Read: How to calculate LIC policy's surrender value?
Let's Talk About Profits
The insurance giant reported an Rs. 15,952 crores net profit in the Jul-Sep quarter and Rs. 682.9 crores profit in the previous quarter. Its net premium rose to Rs. 1.11 lac crore this quarter, which increased from Rs. 97,620 crores by 14.5% in the same period last year. MR Kumar, LIC Chairperson, says that LIC will remain focused on optimizing its portfolio for its stakeholders and increasing the non-par business proportion consistently and profitably. The new business premium or first-year premium increased in the December quarter to Rs. 9,724.71 crores. Single premium saw a rise to Rs. 42, 117 crores.
Net Income from policies, investments, etc.
Investment net income rose to Rs. 84,889 crores by 11% YoY from Rs. 76,574 crores last year. The giant has an army of agents, and the policies sold this quarter rose by 2% to 1.29 crores. LICs solvency ratio rose from 1.77 to 1.85. Its VNB, or gross value of the new business, came in at 19.1%.
For nine months, the operating expense ratio ending December 2022 rose by 27 bps from 14.99% to 15.26% in the same time last year. Its AUM increased from Rs. 40.12 lac crores to Rs. 44.34 lac crores, increasing by 10.54% YoY. It allocated Rs. 5,670 crores to the shareholders' fund as there was an improvement in the premium Income, increasing its net worth. Reuters suggested that LIC plans to transfer around $22 billion into a fund for bonus shares or dividends from the policyholders' funds.
Read: Should you buy, sell, or hold LIC stock?
LIC Chairman will Soon Meet Adani Group's Top Management
The opposition political parties have targeted LIC due to the Hindenburg allegations looking for a probe. The LIC Chairman stated that he would meet Adani Group's management soon. LIC has over 1% or $4 billion Adani Group companies in its AUM. LIC has assured its customers to stay worry-free because of its Adani Group exposure.
Conclusion
LICs stock ended higher by 0.53% at Rs. 613.35/share on BSE before the announcement. We have been seeing an increase in the stock price for the last four trading days. While the stock is down by 13% in one month, it hit its 52-week high on May 17, 2022, touching Rs. 920. It touched its 52-week low on February 1, 2023, touching Rs. 582.45. Its market cap rose on BSE to Rs. 3.88 lac crores.
