Life Insurance Corporation of India (LIC) has reported a net profit after tax (PAT) of Rs95.43bn ($1.15bn) for the first quarter of FY2024 as against Rs6.82bn ($82.19bn) a year ago.

The insurance behemoth noted that the Q1 PAT amount includes Rs74.91bn (net of tax) pertaining to accretion on Available Solvency Margin, which has been transferred to shareholders’ account from the non-par fund.

In Q1 of FY23, the company’s PAT amount did not include Rs41.48bn (net of tax) pertaining to accretion on Available Solvency Margin and it was moved to shareholders account from the non-par fund later on 30 September 2022.

This brings the comparable profit figure for the quarter, which ended 30 June 2022, to Rs48.31bn (net of tax).

In the latest quarter, the company sold as many as 32,16,301 policies in the individual segment, down 12.64% from 36,81,764 policies sold in Q1 last year.

The company’s total premium income during the quarter was Rs983.6bn, almost flat compared with Rs983.5bn in the year-ago period.

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By GlobalData

Individual renewal premium income was Rs523.11bn while individual new business premium income was Rs104.62bn.

Total group business premium income for the quarter totalled Rs355.9bn.

LIC noted that its solvency ratio for the period was 1.89 versus 1.88 in the corresponding year-ago period.

In the latest quarter, the insurer’s overall expense ratio decreased to 12.85% from 14.59%.  

The value of new business for the reported period was Rs13.02bn while the same was Rs13.97bn in the prior year period.

LIC chairperson Siddhartha Mohanty said: “During the first quarter of this financial year, we have achieved an increase in our non-par product mix as a percentage of the overall individual business.

“Our overall expense ratio has become better and our margins are stable on a year-on-year basis. Simultaneously, we continue to work on strategies for diversifying the channel mix.

“We are committed, as LIC to contribute meaningfully to the achievement of the target of ‘Insurance for all by 2047’, thereby providing financial security and livelihood to people.”