Life Insurance Corporation (LIC) on Monday reported an 18 per cent decline in its standalone net profit to Rs 2,371.55 crore, compared with Rs 2,893.48 crore in the corresponding quarter last year. Its net premium income during January-March 2022 stood at Rs 1.43 lakh crore, 18 per cent higher as against Rs 1.21 lakh crore in the year-ago period.
This is LIC’s first financial results announcement after its listing. The company’s first-year gross premium in the January-March 2022 quarter stood at Rs 14,614.25 crore, compared with Rs 10,957.64 crore a year ago. Its renewal premium was Rs 71,157.89 crore, against Rs 67,455.95 crore in the year-ago period, according to a BSE filing.
LIC has declared a dividend of Rs 1.50 per share for the financial year 2021-22. “The board of directors of the Corporation has recommended a dividend of Rs 1.50 per equity share with face value of Rs 1O each for the year ended March 31, 2022, which is subject to approval of shareholders in AGM (annual general meeting),” the state-owned company said in the filing on Monday.
On a consolidated basis, LIC’s net profit during the March 2022 quarter declined 17.41 per cent to Rs 2,408.39 crore in the March 2022 quarter, compared with Rs 2,917.33 crore in the corresponding quarter last year. Its net premium income during January-March 2022 stood at Rs 1.44 lakh crore, higher as compared with Rs 1.22 lakh crore in the year-ago period.
Its solvency ratio stood at 1.85 in the fourth quarter of the financial year 2021-22, compared with 1.77 in the corresponding quarter a year ago. LIC’s 13-month persistency ratio stood at 69.24 per cent in the March 2022 quarter, against 73.94 per cent a year ago. Similarly, the 25th-month ratio was at 68.23 per cent versus 62.73 per cent and the 61st-month ratio at 55.61 per cent compared to 54.43 per cent.
For the full financial year, LIC’s net profit for 2021-22 was reported at Rs 4,043.12 crore, 39.4 per cent higher as compared with Rs 2,900.56 crore in the previous financial year.
Earlier this month, Life Insurance Corporation (LIC) issued its initial public offering (IPO) that witnessed a good response from participants, as it was subscribed 2.95 times. The bids received were 47.83 crore against the offer size of 16.21 crore. The LIC IPO’s price band was fixed at Rs 902-949 per share and the company offered a discount of Rs 60 per share for its policyholders and Rs 45 apiece for retail investors and LIC employees.
However, the state-owned company saw its debut listing at discount on stock markets on May 17, and its market capitalisation (m-cap) fell by about Rs 47,000 crore during the same day to Rs 5.53 lakh crore as compared with the valuation of over Rs 6 lakh crore at its issue price of Rs 949 per share.
LIC’s shares on Monday rose 16.15 points, or 1.97 per cent, to close at Rs 837.75 apiece on the BSE. The current share price is down over 15 per cent from its IPO issue price.
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