Public sector insurer LIC (Life Insurance Corporation of India) posted a net profit of Rs 13,781.59 crore for the quarter ending on March 31, 2024. The company’s net profit rose by 4.5 per cent from Rs 13,190.79 crore reported in the same period of the previous fiscal year.
LIC has recommended a final dividend of Rs 6 per equity share. “The Board of Directors has recommended a final dividend of Rs. 6 per equity share of Rs.10 each for the financial year 2023-24, subject to approval of shareholders in the ensuing Annual General Meeting of the Corporation,” the company added in its financial statement.
The expense of management (EoM) of LIC rose by nearly 15 per cent to Rs 24,709.05 from Rs 21,435.23 last year.
Net income from investments increased by 24.43 per cent year-over-year to Rs 84,425.45 crore in Q4FY24. Net profit for FY24 was Rs 40,676 crore, compared to Rs 36,397 crore in FY23.
The financial statement shows that the additional pension liability due to wage revision for employees stood at Rs 6,306.29 crore. Of this amount, Rs 829.19 crore has been recognized in FY24 across the respective segments.
The remaining Rs 5,477.10 crore, which pertains to the participatory segment, will be charged to the shareholders’ account over a period not exceeding three years starting from FY25, as per the PSU’s filing.
The annualised premium equivalent (APE) grew by nearly 10.7 per cent to Rs 21,180 crore, up from Rs 19,137 crore in the previous year.
However, the value of new business premium (VNB) decreased by 1.6 per cent year-over-year to Rs 3,645 crore.
LIC also said in the filing that the corporation changed its accounting process in September, 2022 regarding the transfer of amount related to the accretion on the available solvency margin from the non-participating policyholders’ account to the shareholders’ account.
During the January-March period, it transferred approximately Rs 8,000 crore. For FY24, the total transferred amount was Rs 29,518.75 crore (net of tax), compared to Rs 27,240.75 crore in FY23.
The third Annual General Meeting of the Members of the Corporation will be held on Thursday, August 22, 2024, the LIC said.
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