LIC Q4 net profit up 2.5%, declares Rs 6/share dividend

Mumbai: Life Insurance Corp. of India (LIC), the country's biggest insurer, reported a 2.5% increase in net profit to ₹13,762 crore for the March quarter, with wage increases accounted for in the period preventing further expansion in the bottom line.

The insurer reported profit of ₹13,421 crore in the same period last year. The solvency ratio improved to 1.98% from 1.87% last year. LIC announced an interim dividend of ₹6 per share.

"The profit has been lower due to wage revision in the quarter," said Siddhartha Mohanty, chairman, LIC. "We expect a double-digit growth in business during this financial year. We will be focusing on increasing margins through non-par products."

The value of new business (VNB) margin for the quarter was at 17%. Non-par sales increased to more than 18%, with Jeevan Utsav and policies with a ticket size of ₹5 lakh increasing from 10% to 13%.

The insurer's asset quality improved, with Gross Non-Performing Assets (GNPA) reducing to 2.01% from 2.56%.

Assets Under Management (AUM) rose by 16.48% year-on-year to ₹51.21 lakh crore. Equity investments during the year amounted to ₹1.3 lakh crore, while debt investments grew by 52% to ₹78,000 crore. LIC booked a profit of ₹60,000 crore during the year and received a tax refund of ₹21,000 crore. The share of non-par business increased to 18.32% and is expected to grow above 20%.

Shares of LIC rose 0.58% to ₹1,035 on the BSE before the results were announced after market closed .