LIC H1FY22 Results: Profit Surges Led By Investment Income
The IPO-bound life insurer's after-tax profit increased 23,850% year-on-year to Rs 1,437 crore during April-September 2021.
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%.