Page 15 - Insurance Times July 2023

SAT stays transfer of
LIC profit jumps 466% in Q4
Sahara's biz to SBI Life
Life Insurance Corporation of India has recorded a standalone net profit of
Rs 13,427.8 crore for the quarter ended March FY23, a rise of 466 per cent The Securities Appellate Tribunal (SAT)
over the corresponding period in the last fiscal. has stayed the order by the IRDAI,
transferring the business of Sahara
The standalone net profit for the March FY22 quarter stood at Rs 2,371.5
India Life Insurance (SILICL) to SBI Life.
crore, according to an exchange filing. The sequential growth in profit was
This is the second time that the
112 per cent.
appellate body has stymied the
The Board of Directors has proposed a dividend of Rs 3 per equity share (face
regulator's move to transfer Sahara's
value Rs10 each) for the FY23. LIC shares closed 0.61 per cent higher at Rs
business to another insurer.
593.55 on the BSE. It shares are quoting at a discount of 37.45 per cent from
In its order, the tribunal noted that
the IPO price of Rs 949 per share. The total profit amounted to Rs 36,397
IRDAI's earlier order that Sahara Life
crore for the March 2023 quarter as against Rs 4,043 crore in the previous
was no longer a 'fit and proper'
fiscal.
promoter has been challenged by the
LIC said standalone net premium income fell by 8.3 percent year-on-year to
appellant in the SAT.
Rs 1.31 lakh crore for March FY23 quarter, but on a sequential basis, the said
"Considering the aforesaid and the fact
premium income increased by 17.9 per cent. "The first year premium fell by
that the earlier direction of the
12.33 per cent on-year to Rs 12,811.2 crore, but the renewal premium
respondent in transferring the business
increased by 6.8 per cent to Rs 76,009 crore compared to year-ago period,"
to ICICI Prudential Life Insurance was
it said. LIC's solvency ratio in March FY23 quarter was at 1.87, which came in
set aside in 2018, and since then, no
higher compared to 1.85 in Q4FY22 as well as Q3FY23.
steps have been taken to transfer the
policies, we find it strange that such
SBI Life to take over actuary and finance and investments steps have been taken after a gap of
to take necessary steps to ensure five years and that too without
200,000 Sahara policies
smooth transition for all policyholders
granting an opportunity of hearing,"
IRDAI has identified SBI Life Insurance of Sahara Life.
the tribunal said in its order.
to take over liabilities of about 200,000
"SBI Life has been directed to take
policies of Sahara India Life Insurance
adequate steps to reach out to SILIC LIC relaxes claims process
(SILIC) as the latter failed to comply
policyholders, with regard to servicing
with regulatory directions, amid for Odisha train victims
of policies, including setting up of a
deteriorating financial health after
dedicated cell to address queries of Life Insurance Corporation of India
being put under restrictions in 2017.
policyholders of SILIC, and also publish announced various reliefs for claim
The insurance regulator has appointed necessary details on their website," settlements of victims of the triple train
a panel of IRDAI members from life, IRDAI said. accident in Odisha's Balasore district.
14 July 2023 The Insurance Times