LIC Q3 Result, Profits Soar 49% YoY to Rs 9,444 crore

Life Insurance Corporation of India (LIC) reported a robust 49% increase in its net profit for the third quarter ended December 31, 2023, reaching Rs 9,444 crore. This positive performance was accompanied by a strategic shift in product mix and a higher transfer to the shareholders' fund, contributing to a stronger bottom line.

Key Highlights:

• Net profit up 49% YoY to Rs 9,444 crore.
• Non-Par business share on APE basis rises to 14.04% in first nine months of FY24.
• VNB margin improves to 16.6%, a 200 bps increase.
• Interim dividend of Rs 4 per share declared.
• Solvency ratio strengthens to 1.93.

Strategic Shifts Drive Growth:

LIC Chairperson Siddhartha Mohanty attributed the improved performance to a "consistent and focused approach towards diversifying and changing our product mix." This includes an increased focus on non-participating policies, which offer fixed returns and contribute directly to the shareholders' fund. The success of this strategy is evident in the rising share of non-Par business and the improved VNB margin.

Commitment to Stakeholders:

Mr. Mohanty emphasized the company's commitment to all stakeholders, stating, "We will relentlessly pursue our targeted product and channel mix with the support of all our employees, agency force and channel partners." He also highlighted the ongoing digital transformation project, aimed at streamlining business processes and enhancing customer experience.

Dividend Payout and Share Price Boost:

The board's approval of an interim dividend of Rs 4 per share was welcomed by investors, leading to a 6.5% surge in LIC's share price on Thursday. This move further underscores the company's focus on shareholder value creation.

Solvency Strength and Future Outlook:

The transfer of Rs 7,692 crore from the non-participating fund to the shareholders' fund has resulted in a strengthened solvency ratio of 1.93. This improved financial position bodes well for LIC's future growth and its ability to meet its long-term obligations.

Overall, LIC's Q3 results paint a positive picture of a company undergoing a strategic transformation while delivering strong financial performance and rewarding its stakeholders. As the company continues to adapt and innovate, it is well-positioned for continued success in the Indian insurance market.