LIC announced on Thursday that its standalone net profit for the quarter ending June 2023 rose significantly to Rs 9,544 crore, compared to Rs 683 crore in the same quarter of the previous year.
The net premium income remained flat at Rs 98,363 crore in the mentioned quarter, compared to Rs 98,351 crore in the corresponding period of the previous year. Sequentially, the net profit declined by 29% from Rs 13,428 crore reported in the previous quarter, and the net premium income dropped by 25% quarter-on-quarter (QoQ).
During the quarter under review, income from investments increased by 30% to Rs 90,309 crore, compared to Rs 69,571 crore in the corresponding quarter of the previous fiscal year. Other income during the quarter stood at Rs 75 crore, down nearly 53% from Rs 160 crore a year ago. The first-year premium decreased by 8% during the first quarter to Rs 6,811 crore, as opposed to Rs 7,429 crore in the same period of the previous year.
LIC reported a profit before tax of Rs 9,634 crore in the June quarter, a substantial increase from just Rs 799 crore reported in the year-ago period. The insurer’s solvency ratio stood at 1.89 in the April-June period, compared to 1.87 in the previous year and 1.88 in the preceding March quarter.
The yield of investments (on policyholders’ funds) without unrealised gains was 8.78% as of June, compared to 6.85% in the previous quarter and 7.74% in the same quarter of the previous year.
It is worth noting that during his response to the ‘No Confidence Motion’ in the Lok Sabha on Thursday, the Prime Minister mentioned LIC and encouraged investors to invest in PSU stocks.