LIC H1FY22 Results: Profit Surges Led By Investment Income

Life Insurance Corp.'s half-yearly profit surged amid rising earnings from investments and other income.

The IPO-bound life insurer's after-tax profit stood at Rs 1,437 crore during April-September 2021, it said in an exchange filing. That compares with Rs 6 crore during the same period in the preceding year.

Net premium rose 1% over the preceding year to Rs 1.86 lakh crore, owing to an increase in linked individual category policy premiums for life and pension plans. Non-linked individual pension policy premiums, however, fell in the first half of FY22.

Linked new business premium growth rate stood at 554% compared with 395% in the corresponding period last year.

Highlights (YoY)

• Revenue rose 5% to Rs 3.4 lakh crore.

• Operating income rose to Rs 1,452 crore as against Rs 9 crore.

• Profit-before-tax margin stood at 0.4% against nil.

• The 13th, 25th, 37th, 49th and 61st month persistency ratios by premium—or customer retention—fell over the year earlier.

• Solvency ratio—that measures the extent to which assets cover commitments for future liabilities—stood at 183.37% as of September 2021, higher than 164.78% a year earlier. It’s well above the minimum solvency requirement of 150%.

• Net worth grew 938% as against 2%.

• Investment yield stood at 7.17% versus 7.24%.