Page 11 - Insurance Times July 2022

LIC Q4 net profit down 18% 71,472.74.05 crore and from single pre- (par) business but going further its driver
mium up 33.70 per cent to Rs 58,250.91 of growth will be non-participating
to Rs. 2.371 crore
crore. (non-par) business. "We have already
Life Insurance Corporation of India said decided that in future we will be launch-
its consolidated net profits for the quar- ing only non-par products. With the
LIC clocks record Rs. 42000
ter ended March stood at Rs 2,409.39 product mix changing towards the non-
crore, down 17.41 per cent compared crore profit from market par side in the future at a greater pace
to Rs 2,917.33 crore in the same quar- LIC has made a record profit of Rs than the par side, the value of new busi-
ter last year. 42,000 crore from equity sales in FY ness will be created. That is the strat-
2021-22, higher by 16.66 per cent from
Net premium income stood at Rs egy we are adopting," he said.
Rs 36,000 crore in the year ago period.
1,44,158.84 crore, up 17.88 per cent A participating (par) life insurance policy
from Rs 1,22,290.64 crore in the corre- The rise in profit came despite the stock allows policyholders to participate in
sponding quarter year ago. This is the market showing huge volatility during the profits of a life insurance company,
first earnings statement from the insur- the financial year. LIC has been a while a non-participating (non-par) plan
ance behemoth after getting listed on contrarian player in the market. does not offer any dividend payouts.
the bourses.
The corporation which announced its
India's largest insurer also announced results saw its standalone net profit Need capital to grow busi-
a dividend of Rs 1.50 per share, it said declining by 18 per cent to Rs 2,371.55
ness, says LIC chief
in a regulatory filing. crore in the quarter ended March 2022,
Life Insurance Corporation of India's
compared to Rs 2,893.48 crore in the
The company's income from invest-
maiden dividend failed to enthuse its
ments came in at Rs 67,855.59 crore, year-ago period.
investors, but the insurer highlighted
almost flat compared to 67,684.27 However, clarifying on the drop of net that it needs capital for growing the
crore in the year-ago quarter. profits, Raj Kumar, MD, LIC, said," Ear- business and maintaining solvency mar-
The 13th-month persistency ratio stood lier the profits were declared at the end gin. The board of LIC approved a divi-
at 69.24 per cent compared to 73.94 of the year only. So that's why the quar- dend of Rs. 1.5 per share, which trans-
per cent in Q4 of last year. Similarly, the terly numbers are not comparable. This lates to a payout of Rs. 948.75 crore
25th-month ratio was at 68.23 per cent year's (FY22) Q4 number is not compa- aggregating to about 23.46 per cent of
versus 62.73 per cent and the 61st- rable with the Q4 of last year (FY21) profit after tax.
month ratio at 55.61 per cent com- because it was for the full year (FY21)."
"Out of the Rs. 4,043 crore of profit,
pared to 54.43 per cent. From September 2022 onwards, the
the balance remains with shareholder.
comparable data points will be avail-
The company said its income from first LIC also needs capital for growing the
able, he said.
year premium increased 32.65 per cent business. We need to have available
to Rs 14,663.19 crore, from renewal Kumar said the corporation's product solvency margin," said Raj Kumar, Man-
premium 5.37 per cent to Rs mix is dominated by the participating aging Director, LIC.

The Insurance Times, July 2022 11