Life Insurance Corporation of India (LIC) has reported a net profit of Rs 13,781.59 crore for the quarter ending on March 31, 2024, a 4.5 per cent increase from the previous fiscal year. The company has recommended a final dividend of Rs. 6 per equity share, subject to approval at the Annual General Meeting.
The expense of management for LIC rose by almost 15 per cent to Rs 24,709.05 from the previous year. Net income from investments saw a significant increase of 24.43 per cent year-over-year to Rs 84,425.45 crore in the fourth quarter of FY24. The net profit for the entire fiscal year was Rs 40,676 crore, compared to Rs 36,397 crore in the previous fiscal year.
The financial statement also revealed that there was an additional pension liability of Rs 6,306.29 crore due to wage revision for employees. A portion of this amount has been recognized in FY24, with the remaining amount to be charged to the shareholders’ account over a period not exceeding three years starting from FY25.
The annualised premium equivalent (APE) for LIC grew by nearly 10.7 per cent to Rs 21,180 crore, while the value of new business premium (VNB) decreased by 1.6 per cent year-over-year to Rs 3,645 crore. LIC also made changes to its accounting process in September 2022 regarding the transfer of amount related to the accretion on the available solvency margin.
In the January-March period, LIC transferred approximately Rs 8,000 crore, with a total transferred amount of Rs 29,518.75 crore (net of tax) for FY24, compared to Rs 27,240.75 crore in FY23. The company announced that the third Annual General Meeting of the Members of the Corporation will be held on August 22, 2024.
