LIC of India Q4FY23 PAT up 466% at Rs13,428 crore on higher accretion to the available solvency margins

LIC of India reported lower top line revenues for the March 2023 quarter on standalone basis at Rs200,158cr. The revenues were up 1.7% on sequential basis. For FY23, total revenues were about 5% higher yoy at Rs788,173 crore. In the life business, LIC maintained its market leadership with 62.58% market share, although the net premium income for the year did face pressure. The gross value of new business (VNB) was up 16.5% for FY23 at Rs11,553 crore. VNB margins improved by 110 basis points to 16.2%. For the year, its embedded value improved by 7.53% yoy at Rs5.82 trillion.

At the close of the year, LIC saw its AUM grow 7.7% yoy at Rs43.97 trillion. That is more than the combined AUM of all the 42 mutual funds in India put together. In FY23, LIC sold a total of 2.04 crore individual policies. The thirteenth month persistency on premium basis improved by 150 bps in the year at 77.09%. Full year premium incomes were up 10.9% at Rs474,005 crore, although Q4 premiums income was down 8%. The profit for FY23 includes an amount of Rs27,241 crore pertaining to accretion to the available solvency margins transferred from the no-par fund to shareholders account.

Financial highlights for Mar-23 compared yoy and sequentially

 LIC of India    
Rs in Crore

Mar-23

Mar-22

YOY

Dec-22

QOQ

Revenues

₹ 2,00,158

₹ 2,14,708

-6.78%

₹ 1,96,891

1.66%

Net Profits

₹ 13,428

₹ 2,372

466.20%

₹ 6,334

111.99%

      
Diluted EPS

₹ 21.23

₹ 3.75

 

₹ 10.01

 
Net Margins

6.71%

1.10%

 

3.22%

 
Solvency Ratio

1.87

1.85

 

1.85

 
Expense Mgmt Ratio

16.24%

13.53%

 

12.32%

 
Policyholder Liability Ratio

97.34

398.59

 

137.88

 
Yield on Investments

5.93%

4.30%

 

7.07%

 
Gross NPAs

2.56%

6.03%

 

5.02%

 

 

The sharp surge in profits was largely on account of the surplus transfer. The board has recommended a dividend to shareholders of Rs3 per share compared to Rs1.50 per share in FY22. In terms of annualized premium equivalent (APE), the total premium for FY23 was up by 12.5% at Rs56,682 crore. Out of this 68.2% of the above amount was attributable to the individual business with the balance to the group business. The persistency ratio for the basis ended 13th month and the 61st month, was higher than the previous year. Out of the overall 12.5% growth in APE, individual APE grew at 8.7% while the group APE grew at 21.57%.

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