Key Points Of LIC Company Income:
- LIC, the public sector life insurer, reported a manifold increase in net income to Rs 6,334.2 crore during the three months ending December 2022, compared to Rs 235 crore a year ago, due to higher premium income and investment gains.
- LIC earned Rs 1,11,787.6 crore in net premium income during the reporting quarter, up from Rs 97,620.34 crore in the year-ago period.
- Of the total premium income, first-year premium rose to Rs 9,724.7 crore, renewal premium income rose to Rs 60,194.87 crore, and single premium income jumped to Rs 42,117 crore.
- LIC Chairman M R Kumar stated that as much as Rs 5,670 crore of the total net income was accretion from the non-par fund due to the change in accounting norms and the enabling provision to transfer surpluses from this account to shareholders.
- The company budgeted Rs 2,000 crore for transferring Rs 19,000 crore to the shareholders’ fund, and the net income would have been Rs 8,334.2 crore, including this transfer.
- The company’s income from investments rose to Rs 84,889 crore from Rs 76,574.24 crore a year ago.
- LIC’s agency commission rose to Rs 8,319 crore paid to its over a million agents, compared to Rs 5,850.7 crore in the December 2021 quarter, but management expenses came down marginally to Rs 13,799 crore from Rs 14,022 crore.
- The provision in the new budget to tax life insurance policies with annual premiums of more than Rs 5 lakh would have a negligible impact on LIC’s sales as such a portfolio is only 1.85% of the total annualized premium. But Kumar added that the company needs clarity from the ministry on the methodology on how this tax will be calculated.
- LIC has budgeted for transferring Rs 6,099 crore to the shareholders’ fund during the reporting quarter as against Rs 117.8 crore in the year-ago period, which was not paid out as then it did not have such a provision.
- The company made an additional provision of Rs 11,543.75 crore for employee retirement benefits due to wage revision, which became effective from August 2022.
- LIC has outstanding unclaimed amounts/deposits and interest accrued on unclaimed amounts aggregating to Rs 20,724.58 crore at the end of December 2022.
- The LIC counter edged up 53 basis points to close at Rs 613.35.
Details Of LIC Company Income:
LIC, the public sector life insurer, reported a manifold increase in net income to Rs 6,334.2 crore during the three months ending December 2022, compared to Rs 235 crore a year ago, due to higher premium income and investment gains. The company also stated that it earned Rs 1,11,787.6 crore in net premium income during the reporting quarter, up from Rs 97,620.34 crore in the year-ago period. Of the total premium income, first-year premium rose to Rs 9,724.7 crore, renewal premium income rose to Rs 60,194.87 crore, and single premium income jumped to Rs 42,117 crore.
LIC Chairman M R Kumar stated that as much as Rs 5,670 crore of the total net income was accretion from the non-par fund due to the change in accounting norms and the enabling provision to transfer surpluses from this account to shareholders. The company budgeted Rs 2,000 crore for transferring Rs 19,000 crore to the shareholders’ fund, and the net income would have been Rs 8,334.2 crore, including this transfer. The company’s income from investments rose to Rs 84,889 crore from Rs 76,574.24 crore a year ago.
LIC’s agency commission rose to Rs 8,319 crore paid to its over a million agents, compared to Rs 5,850.7 crore in the December 2021 quarter, but management expenses came down marginally to Rs 13,799 crore from Rs 14,022 crore.
On the new budget provision to tax life insurance policies with annual premiums of more than Rs 5 lakh, the company stated that the provision would have a negligible impact on its sales as such a portfolio is only 1.85% of the total annualized premium. But Kumar added that the company needs clarity from the ministry on the methodology on how this tax will be calculated.
LIC has budgeted for transferring Rs 6,099 crore to the shareholders’ fund during the reporting quarter as against Rs 117.8 crore in the year-ago period, which was not paid out as then it did not have such a provision. The company made an additional provision of Rs 11,543.75 crore for employee retirement benefits due to wage revision, which became effective from August 2022.
LIC has outstanding unclaimed amounts/deposits and interest accrued on unclaimed amounts aggregating to Rs 20,724.58 crore at the end of December 2022. The LIC counter edged up 53 basis points to close at Rs 613.35.
About LIC:
Life Insurance Corporation of India
Higher premium income and investment gains boosted the public sector life insurer LIC’s net income manifold to Rs 6,334.2 crore during the three months ending December 2022 as against Rs 235 crore a year ago.
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