Standalone net profit at the nation’s largest insurer fell to ₹2,372 crore in the quarter ended March 31 from ₹2,893 crore a year earlier. LIC said total claims it paid during the quarter increased 19% to ₹1.21 lakh crore.
For the fiscal year ended March 31, net profit increased 39% to ₹4,043 crore from ₹2,901 crore the year before, helped by a ₹1,299 crore provision write-back.
On Monday, LIC reported its first fiscal results after becoming a publicly traded company. The company also announced a 15% dividend for the fiscal year, the first in its history.
The writeback in provisions for doubtful debts also helped LIC during the quarter ended March. The company got the benefit of a ₹1,085 crore of provision write-back during the quarter, compared with ₹9,382 crore in the quarter ended March 2021.
Net premium income, after taking into account the reinsurance cost, increased 18% to ₹1.43 lakh crore in the fourth quarter from ₹1.21 a year earlier. Income from investments remained flat at ₹67,498 crore. In the year earlier, it was ₹67,435 crore.
The public sector life insurer dominates the Indian market with more than a 70% market share.
Its solvency ratio – a measure of an insurance company’s payment obligations to its current assets – improved to 185% in the quarter ended March 2022 from 176% a year earlier. The minimum solvency ratio prescribed by regulations is 150%.
Goss non-performing assets reduced to 6.03% of total assets from 7.78%. Income from first year premium, a key matrix for a life insurance company, increased 33% to ₹14,614 crore in the quarter from ₹10,958 crore. Income from renewal premium rose 5% to ₹71,158 crore from ₹67,456 crore a year earlier.
The 13-month persistency ratio – a key metric to assess the flow of renewal premiums from policyholders – was 69.24% at the end of March 2022, compared with 73.94% a year earlier.