LIC has earned strong profits in the first quarter of the current financial year. There has been an increase of about 14 times in the profits of LIC. After the strong quarterly results, LIC shares can see a boom today.
Life Insurance Corporation of India (LIC), the country’s largest insurance company, has registered strong profits in the June quarter. In the first quarter (April-June) of the current financial year, LIC’s profit has increased by almost 14 times. Due to higher return on investment, there has been a huge jump in the profits of LIC. The company’s profit for the quarter ended June 30 stood at Rs 9,544 crore. At the same time, in the same quarter last year, the profit figure was Rs 683 crore.
Decline in policy sales
On Thursday, LIC shares fell 0.4 per cent to close at Rs 641.6 on the BSE. The company said in an exchange filing that net premium income remained mostly stable at Rs 98,363 crore. The government insurance company is transferring money from its non-participating fund to shareholders’ fund to increase its profits. LIC, largely dependent on an army of sales agents, said policy sales declined by 12.6 per cent in the quarter.
What was the total earning?
Net income from investments increased to Rs 90,309 crore as compared to Rs 69,571 crore in the April-June period of 2022-23. Gross NPA stood at 2.48 per cent as of June 30, compared to 5.84 per cent in the same period last year. The net NPA of the insurance company remained zero as of last year. LIC told the stock market that the company’s total income rose to Rs 1,88,749 crore in the June quarter. It was Rs 1,68,881 crore in the same quarter last year.
The transfer of funds by the company to the shareholders’ account decreased from Rs 799 crore to Rs 1.48 crore. LIC Chairperson Siddharth Mohanty said the insurer has increased the minimum ticket size of policies and focused more on margin oriented non-participating products.
LIC shares
LIC shares are still under pressure. The stock has lost 1.29 per cent in the last five days. The IPO of government insurance company LIC was opened between May 4 and 9 last year. Its price band was between Rs 902 to Rs 949. But its listing in the stock market was done at Rs 872, 8.11 per cent less than the issue price.
Although, it went up later in the month of May, but still remains below its issue price. LIC’s MCap at the time of listing was Rs 6,00,242 crore. It has now come down to Rs 4.06 lakh crore.
