New Delhi [India], August 12 (ANI): Life Insurance Corporation of India (LIC), the country's largest insurer, on Friday said its net profit jumped to Rs 682.88 crore for the quarter ended June 30, 2022, sharply higher than a mere Rs 2.94 crore net profit recorded in the corresponding period of the previous year.
However, the net profit is down on a sequential basis. For January-March 2022 quarter, LIC's net profit stood at Rs 2,371.5 crore.
The Board of Directors of Life Insurance Corporation of India approved the standalone and consolidated financial results for the quarter ending June 30, 2022.
For the quarter ended June 30, 2022, LIC registered an increase of 20.35 per cent in the Total Premium Income at Rs 98,352 crore as compared to Rs 81,721 crore for the quarter ended June 30th 2021.
The marketing activity picked up the pace, overall business momentum was strong for LIC and as a result, the overall market share by First Year Premium Income (as per IRDAI) increased to 65.42 per cent for the quarter ended June 30, 2022 as compared to the full-year market share of 63.25 per cent for FY 2021-22, LIC said in a statement.
The market share by First Year Premium Income for the quarter ended June 30, 2021 was 67.52 per cent.
"As the COVID situation normalises, we are seeing a larger activity on the ground, therefore bringing us back closer to our model of having 'feet on street' and continuous in-person engagement with our customers," MR Kumar, Chairperson, LIC, said in a statement.
"While the growth numbers are very robust for the first quarter as seen in comparison to the same quarter of FY 2021-22, we are aware that the Q1 of the previous year, FY 2021-22 was impacted by a very tough second wave of COVID. However, the trajectory seems upwards for sure and we are looking at increased business volumes as is evident in our market share in the year to date since January 2022," he said.
Kumar further noted that LIC has been now included in the Fortune 500 list of companies and is placed at number 98 in the list. With this ranking, LIC is the top-ranked Indian company on the Fortune 500 list.
The market share of LIC in individual First Year Premium Income (as per IRDAI) was 43.86 per cent for the quarter ended June 30, 2022. In the Group First Year Premium Income (as per IRDAI), the market share of LIC during the quarter ended June 30, 2022 was 76.43 per cent.
On an Annualised Premium Equivalent (APE) basis, the total premium was Rs 10,270 crore for the quarter ended June 30th, 2022. Of this 62.80 per cent (Rs 6,450 crore) was accounted for by the individual business and 37.20 per cent (Rs 3,819 crore) by the Group Business. Within the Individual business, the share of Par products on APE basis was 92.25 per cent and balance 7.75 per cent was due to non-par products.
A total of 36.81 Lakh policies were sold in the individual segment during the quarter ended June 30, 2022 thereby registering an increase of 59.56 per cent over the similar quarter last year when 23.07 Lakh policies were sold.
For the quarter ended June 30, 2022, the persistency ratios on premium basis for the 13th month, 25th month, 37th month, 49th month and 61st month were 75.75 per cent, 67.78 per cent, 64.34 per cent,60.82 per cent and 58.99 per cent, respectively. The comparable persistency ratios for the corresponding quarter ended June 30th, 2021 were 72.49 per cent, 66.53 per cent, 62.62 per cent, 59.87 per cent and 56 per cent, respectively.
As at end of June 30th, 2022 LIC had agency strength at 1.33 million, as compared to 1.34 million as on June 30th 2021. The percentage of our agents working in rural areas is 48 per cent whereas the remaining 52 per cent operate in urban areas.
The asset under management increased to Rs 41.02 lakh crore as on June 30, 2022 as compared to Rs 38.13 lakh crore on June 30, 2021 registering an increase of 7.57 per cent. (ANI)