LIC profit for FY22 surges 39.4 pc to Rs4,043 cr

BBN Bureau

Proposes Rs1.50 apiece cash dividend

MUMBAI/May 31-2022: The Life Insurance Corporation (LIC) of India recorded 39.39 per cent growth in its net profit for the financial year 2021-22 (FY22) to Rs4,043.12 crore as against Rs2,900.57 crore in the previous year.

For the year ended March 31, 2022, LIC registered an increase of 6.1 per cent in the net premium income to Rs4.27 lakh crore compared with Rs4.03 crore in the previous financial year.

The earnings per share (EPS) for the financial year 2021 -22 was Rs6.39 per share. The yield on investments on policy holders’ funds excluding unrealised gains was 8.55 per cent for the period ended March 31, 2022 as against 8.69 per cent for the previous year.

Rs1.50 apiece dividend

The LIC’s board of directors has recommended 23.46 per cent dividend, which works out Rs1.50 per share translating to a dividend pay-out of Rs948.75 crore.

The net NPAs in the policy-holders’ fund declined to 0.04 per cent for the year ended March 31, 2022 as compared with 0.05 per cent for the previous year ended March 31, 2021.

The solvency ratio for the year ended March 31, 2022 was 1.85 as against 1.76 for the period ended March 31, 2021.

Persistency ratio

For the year ended March 31, 2022, the persistency ratios for the 13th month, 25th month, 37th month, 49th month and 61st month were 75.59 per cent, 73.47 per cent, 66.58 per cent, 63.85 per cent and 61 per cent respectively.

Though the year started on a muted note due to the Covid-19 pandemic, LIC was able to increase the marketing activities and closed the year with a significant growth of 18.70 per cent in the quarter of January to March 2022 in Individual First year premium Income as compared with the corresponding quarter last year.

LIC registered a growth of 6.31 per cent in Weighted Received Premium (WRP) for the financial year ended March 31, 2022.

LIC completed 2.17 crore of new policies during the year with a growth of 3.56 per cent over the last year.

Market share

The market share of LIC in individual policies was 74.60 per cent for the financial year ended March 31, 2022. In the group business, the market share of LIC during the year under discussion was 89.07 per cent by number of policies/schemes, and 76.16 per cent by first-year premium.

In composite first year premium income, the market share of LIC for FY22 was 63.25 per cent. During the period, LIC maintained an agency strength at 1.33 million, a large share of whom are working in the rural areas of the country, thereby rendering LIC a pan-India presence across the various socio-economic segments.

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