Life Insurance coverage Company of India (LIC), the nation’s largest insurer, reported a web revenue of Rs 7,925 crore through the July-September interval in comparison with Rs 15,952.5 crore throughout the identical interval of the earlier yr.
The revenue figures can’t be in contrast with the identical interval final yr because of the change in accounting coverage launched in September 2022, the life insurance coverage firm mentioned.
Throughout the April-June quarter, the insurer reported a web revenue of Rs 9,543.71 crore.
In September 2022, LIC modified its accounting coverage with respect to transferring quantities (web of tax) associated to the buildup of obtainable solvency margin from the non-participating policyholder’s account to the shareholder’s account.
Within the July-September quarter of the earlier fiscal, the quantity transferred was Rs 14,272 crore and the quantity within the quarter underneath overview was Rs 6,277 crore.
LIC has remitted Rs 27,241 crore (web of tax) throughout 2022-23.
The insurance coverage large reported web premium revenue of Rs 1,07,396.77 crore in Q2 FY24, down 18.70 per cent year-on-year from Rs 1,32,104.13 crore in Q2 FY23. Premium revenue rose for first yr rose by 9.47 per cent year-on-year to Rs 9,988.18 crore whereas renewal premiums rose by 6.21 per cent to Rs 59,642.92 crore.
Single premium revenue fell by 43.43% year-on-year to Rs 37,846.04 crore.
By way of market share measured by First Yr Premium Revenue (FYPI) (as per Insurance coverage Regulatory and Growth Authority of India), LIC continues to be the market chief in life insurance coverage with a share of 58.50 per cent. For the six months ended September 30, 2023, the LIC had a market share of 40.35 per cent within the particular person enterprise and 70.26 per cent within the group enterprise.
The corporate’s Worth New Enterprise (VNB) margin improved to fifteen.29 per cent within the quarter underneath overview from 15.24 per cent a yr in the past.
Siddhartha Mohanty, Chairman, mentioned: “VNB’s present margins are a sign of our initiatives that obtain the aim of sustaining profitability as we modify course. We’re conscious of the market dynamics in sure elements of our enterprise and are engaged on profit-oriented consolidation.”
On a semi-annual foundation, VNB margin remained flat at 14.6 per cent in 1HFY24 in comparison with 1HFY23 because of the change in product combine to focus in response to the aggressive market.
“It’s a aggressive market. Accordingly, we’ve got additionally revised costs in some merchandise as a way to acquire a higher market share. One other vital facet is the impression of risk-free charges… and since they’ve decreased, this additionally has an impression on VNB margins.” “Total, that is the impression of change in product combine, realignment of product advantages and non-participating segments,” mentioned Dinesh Pant, appointed actuary and chief government officer (actuary).
Revenue from funding rose 11.70 per cent year-on-year to Rs 93,942.20 crore throughout Q2FY24. In the identical interval final yr, it stood at Rs 84,103.64 crore.
The return on investments in policyholders’ funds, excluding unrealized positive aspects, was 9.11 % through the quarter. It was 8.73 % in the identical interval final yr and eight.78 % within the earlier quarter.
The gross non-performing belongings (GPA) ratio of LIC through the earlier quarter declined to 2.43 per cent on the finish of the July-September interval. It reported flat web NPA in comparison with the final quarter.
Within the second quarter, LIC’s continuity charges on premium foundation for the thirteenth month and sixty-first month have been 71.19 per cent and 55.17 per cent, respectively.
Within the earlier quarter, the steadiness charges for the thirteenth and sixty-first months have been 75.10 % and 59.25 %, respectively.
(Tags for translation) Life Insurance coverage Firm (R) Second Quarter End result (R) Life Insurance coverage Firm Revenue (R) Insurance coverage Sector