LIC’s Q3 Earnings surge by 49% YoY to Rs 9,444 crore; announces dividend of Rs 4 per share

On Thursday, LIC announced a standalone net profit of Rs 9,444 crore for the quarter ending December 2023, marking a 49% increase from the previous year’s Rs 6,334 crore.

Additionally, the net premium income for the third quarter increased by 5% year-on-year to Rs 1.17 lakh crore, up from Rs 1.11 lakh crore in the same quarter of the previous year.

The board of the company suggested an interim dividend of ₹4 per share for the fiscal year 2024, with a record date scheduled for February 21, 2024.

Lic Q3 result

Moreover, LIC’s Q3 investment income for the December quarter grew by 12% year-on-year to ₹95,266.8 crore from ₹84,869 crore in Q3FY2023, while management expenses surged by 32% year-on-year to ₹18,193.8 crore.

Siddhartha Mohanty, Chairperson of LIC, stated, “Our focused efforts to diversify our product mix are paying off rapidly. Non-Par business now constitutes 14.04% of our total individual business for the first nine months of FY 2024, alongside a 200 bps increase in VNB margin levels to 16.6%. This reflects the success of our strategic initiatives.

“We are dedicated to ensuring that all our actions add value for our stakeholders. Our aim is to continue refining our product and channel mix with the support of our employees, agency force, and channel partners. We are committed to developing new products tailored to meet our customers’ evolving needs. With our ongoing digital transformation project, we are confident of significant improvements in our business processes.”

The board of the state-owned insurer sanctioned an interim dividend of Rs 4 per share. LIC’s stock on BSE surged 6.5% to close at Rs 1,112 on Thursday.

It transferred Rs 7,692 crore from its non-participating fund to shareholders’ fund for the quarter, up from Rs 5,670 crore in the same quarter last year.

LIC gathers premiums from ‘non-participating’ policies, which offer fixed returns, and places them in a separate fund. Since 2022, it has been periodically shifting a portion of these funds to a shareholders’ fund, which boosts its profits.

LIC stated that these transfers were intended to bolster its solvency margin. Its solvency ratio, indicating its capability to fulfill long-term debt obligations, rose to 1.93 in the third quarter, up from 1.85 a year ago.

The net premium income increased by almost 4.6%, with total premium for December nearly doubling compared to the previous year, following declines in the prior two months.

LIC interim dividend announcement

The company declared an interim dividend of Rs 4 per share, amounting to 40% of the face value of Rs 10 per share.

The record date for the dividend payment was set as February 21 by the LIC board.

“The interim dividend will be disbursed within 30 days from its declaration,” stated the company.

LIC share price

LIC’s share price rose 5.9% to Rs 1,106.3 on the BSE before the earnings report.

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