LIC Q4 Results: Net profit quadruples, Rs 3 per share dividend declared

Insurance behemoth Life Insurance Corporation of India, popularly known as LIC recently revealed its results for the March quarter. While the net profits jumped manifold from the previous year, the net premium income witnessed a slowdown.

Meanwhile, the LIC share price has been under pressure in recent times. In 2023 so far, the LIC share price has eased by 15% while over the past year it has declined by more than 26%.

So, will the LIC share price retain its mojo post the results? Why did LIC net premium income fall? What made LIC net profits jump? How much was the LIC dividend? Did the LIC margins improve? Let’s try and decode!

Decoding LIC Q4 Results

LIC net premium income:

• LIC reported a net premium income of Rs 1,32,000 crores in the March quarter. This marked a de-growth of 8.3% from the previous year. A fall in the First Year Premium income and Single Premium income can be attributed to the overall decline in the net premium income for the March quarter.
   
• Renewal premium income for the Jan - Mar ‘23 period stood at Rs 76,328.3 crores, up 6.8% from the previous year.
   
• Single Premium income dropped by 25.7% from the previous year to Rs 43,252 crores while First Year Premium income decreased by 12.3% to Rs 12,852 crores.

LIC Embedded Value: LIC’s embedded value at the end of March stood at Rs 5,82,243 crores. This marked a yearly rise of 7.5%.

Embedded value is a key metric to measure the value of an insurance business. It is calculated by computing the future value of the profits of an insurance business.

LIC Solvency Ratio: LIC’s solvency ratio improved slightly at the end of the March quarter to 1.87% compared to 1.85% in the previous year.

In the insurance business, the solvency ratio refers to a measure of an insurance company's financial strength and ability to meet its policyholder obligations.

LIC net commission: LIC’s net commission for the Jan - Mar ‘23 period came in at Rs 8,428.5 crores, up 5.4% from the previous year.

LIC assets under management (AUM):  LIC’s AUM at the end of the March quarter stood at Rs 43.97 lakh crores. This marked a growth of 7.7% from the previous year.

LIC dividend: LIC declared a dividend of Rs 3 per share during the quarter. 

LIC net profits: LIC’s profits for the Jan - Mar ‘23 period jumped by a whopping 466.2% from the previous year to Rs 13,427.8 crores.

This is not investment advice. Investments in the securities market are subject to market risk, read all the related documents carefully before investing. Past performance is not indicative of future returns.