Life Insurance Corporation of India (LIC) reported a net profit of ₹22,970 crore for the nine months (9M) ending December 31st, 2022, as compared to ₹1,672 crore in the year ago period.

The bottom line was boosted due to transfer of ₹19,942 crore (net of tax) pertaining to the accretions on the available solvency margin from non par to shareholders account, per the corporation’s statement.

Net profit in the reporting third quarter rose to ₹6,334 crore (₹235 crore) due to transfer of ₹5,670 crore pertaining to the aforementioned accretions.

The corporation registered an increase of 20.65 per cent in the total premium income at ₹3,42,244 crore in 9MFY23 as compared to ₹2,83,673 crore in 9MFY22.

“The business momentum continues to be strong for LIC and as a result the overall market share by first year premium income (as per IRDAI) was 65.38 per cent for the nine month ended December 31, 2022 as compared to 61.40 per cent for the corresponding period last year,” Chairman MR Kumar said.

Assets under management

The Assets Under Management (AUM) increased to ₹44,34,940 crore as on December 31, 2022 as compared to ₹40,12,172 crore on December 30, 2021, registering an increase of 10.54 per cent year on year. 

For the nine months ending December 31, 2022, there was an improvement in persistency ratio on premium basis for both 13th month and 61st month at 77.61 per cent (76.84 per cent as on December 31, 2021) and 62.73 per cent (61.91 per cent), respectively.

For the nine months ending December 31, 2022 the persistency ratio on number of policies basis for the 13th month and 61st month were 64.99 per cent (65.47 per cent) and 51.42 per cent (50.85 per cent), respectively.

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