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LIC posts ₹683 crore profit for quarter 1, assets of ₹41 lakh crore

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MUMBAI: Life Insurance Corporation (LIC) has reported a net profit of Rs 683 crore for the quarter ended June 2022 compared to Rs 2. 6 crore in the corresponding quarter of the previous year. But the numbers are not comparable as the corporation was not preparing quarterly results in earlier years. Prior to its IPO in the first quarter, the accounting policies of the corporation had changed.
On a sequential basis, the corporation’s net profit was down from Rs 2,371 crore for the quarter ended March 2022. The value of new business margin, which reflects the profitability of products sold during the quarter, slipped to 13. 6% from 15. 1%.
Corporation officials said that this was largely because of a change in product mix as funded group policies had a lower margin compa- red to individual products. An improvement in assumptions partly offset the reduction in margin due to a change in product mix.
Announcing the results on Friday, LIC chairman M R Kumar said, “We are positive that growth in new business will be good, Covid has almost vanished and all our agents are back to work. We have launched a couple of non-par products and we now have more non-par products than par products”.
In the first quarter, the corporation made gross equity investments of Rs 46,444 crore and sales of Rs 12,448 crore, resulting in a net investment of Rs 34,000 crore. The corporation’s assets under management stood at Rs 41 lakh crore — a 7. 6% increase over Rs 38. 1 lakh crore at end of the corresponding quarter of the previous fiscal.

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