LIC reports impressive 447.5% growth in Q4 consolidated PAT to ₹13,191 crore; declared dividend

Largest life insurer in India, LIC posted impressive growth in the bottom-line for the fourth quarter of FY23. Consolidated Q4 FY23 PAT stood at ₹13,190.79 crore, rising by a breathtaking 447.47% or 5.5 folds year-on-year. In the previous fiscal's Q4, the PAT stood merely at ₹2,409.39 crore.

Sequentially, the growth was 107.77% in Q4 PAT. In December 2023 quarter, the PAT stood at ₹6,348.71 crore.

The latest profitability is after tax and extraordinary items.

In the top-line front, consolidated net premium income stood at ₹1,32,223.21 crore in Q4FY23, tumbled by 8.27% from ₹1,44,158.84 crore in Q4 of previous fiscal. However, LIC saw a growth of 17.7% from ₹1,12,296.69 crore in Q3FY23.

Similarly, on a standalone basis, PAT came in at ₹13,427.81 crore in Q4FY23, skyrocketing by 466.20% YoY and 111.98% QoQ. Net premium income stood at ₹1,31,761.10 crore, declining by 8.34% YoY but rising by 17.87% QoQ.

LIC board of directors recommended a dividend of ₹3 per equity share for FY23.

Read here: LIC to pay final dividend of 30% from FY23 profits; check details of record date, AGM, others

Siddhartha Mohanty, Chairperson, LIC said, “Our results demonstrate the resilience of our business, built in every nook and corner of the country, over a period of more than six decades. Our efforts towards enhancing the share of non par products in the overall product mix are bearing fruits."

For the entire fiscal FY23, LIC's total premium income stood at ₹4,74,005 crore up by 10.90% YoY from ₹4,27,419 crore in FY22.

LIC held its leadership position in First Year Premium Income (FYPI) in India with a market share of 62.58% in FY23.

FY23 profit was at ₹36,397.40 crore as compared to ₹4,043.12 crore for the previous year. This profit in FY23 comprises of an amount of ₹27,240.75 crore (net of tax), which is pertaining to the accretion on the Available Solvency Margin, transferred from Non Par fund to shareholders account.

Further, on an Annualised Premium Equivalent (APE) basis, the total premium was ₹56,682 crore in FY23 as compared to ₹50,390 crore in FY22, representing a growth of 12.49% year on year. During the fiscal 2022-23, 68.22% ( ₹38,667 crore) was accounted for by the Individual Business and 31.78% ( ₹18,015 crore) by the Group Business.

Read here: Leading life insurer LIC cuts stake in NHPC to 3.186% from earlier 5.203%

Also, LIC's Value of New Business on a grossly basis, was at ₹11,553 crore in FY23 as against ₹9,920 crore in FY22, recording 16.46% growth. The VNB margins also expanded to 16.2% (Net) as compared to 15.1% in FY22.

Moreover, in FY23, the the persistency ratios, on number of policies basis for the 13th month and 61st month were 64.28%, and 49.86%, respectively. The comparable persistency ratios for the previous year ended March 31st,2022 were 63.45% and 49.86%, respectively. Therefore the 13th month persistency has improved both on premium basis and on policy basis while the 61st month persistency has improved on premium basis.

The insurer's asset under management (AUM) jumped by 7.65% to ₹43.97 lakh crore by end of March 2023 fiscal, as against ₹40.85 lakh crore in the previous year.

Additionally, solvency ratio for the fiscal year stood at 1.87 before considering the final dividend of ₹3 per share and will be 1.86 (if final dividend included) as against 1.85 for the year ended March 31st 2022.

With the increase in profit, net VNB margin and IEV, Mohanty said, "we are well positioned to continue our growth journey, in the service of the nation and its citizens."

Lastly, he added, "the regulatory initiatives towards Insurance for All by 2047 will present opportunities to grow for the sector and we intend to participate in that growth. As we move forward to grow our business further, we will endeavor to create superior value for all our stakeholders. Finally we thank all our policyholders, agents, employees and shareholders for maintaining their faith in us."

On BSE, LIC's share price closed at ₹593.55 apiece up by 0.61%.