LIC shares jump ~2% as net profit jumps in December quarter

10 Feb 2023 , 02:40 AM

The Life Insurance Corporation of India (LIC) reported a 27-fold increase in fiscal third-quarter net profit to Rs 6,334 crore on Thursday

In the most recent quarter, the state-run insurer transferred Rs 5,670 crore of surplus to shareholders’ accounts. It had made a net profit of Rs 235 crore in the previous year.

In the quarter ended December 31, revenue increased 13% to Rs1.96 lakh crore. The management expense ratio, a measure of profitability, fell to 12.32% from 14.34% the previous year.

The solvency ratio increased from 177% to 185%, well above the minimum requirement of 150%. An insurer’s solvency ratio measures its ability to meet long-term payment obligations.

Net profit for the nine months ended December 31, 2022, was Rs22,970 crore, up from Rs1,672 crore the previous year. This was due to a transfer of Rs19,942 crore from non-par to shareholders’ account for accretions on the available solvency margin.

At around 2.32 PM, LIC was trading 1.46% higher at Rs622.10, against its previous close of Rs613.15 on NSE. The counter touched an intraday high and low of Rs640 and Rs621 respectively.

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