Results for the Q3 of LIC show a profit that more than doubles to $8,334 million and an increase in net premium income of 14.5%.

 Life Insurance Corporation of India (LIC), a mammoth insurer, on Thursday presented its financial results for the December quarter (Q3FY23). The insurer claims that as premium income improved and it transferred $5,670 crore to its shareholders' fund to strengthen its net worth, its consolidated net profit increased significantly to $8,334 crore in the third quarter.

In the same quarter of the previous fiscal year, the world's largest insurer reported a profit of 235 crore. It had recorded a net profit of Rs. 15,952 crore for the quarter from July to September. In the three months from April to June, LIC posted a net profit of 682.9 crore. 

In the reporting quarter, LIC's net premium income increased to 1.11 lakh crore, up 14.5% from 97,620 crore in the preceding quarter.

"We continue to remain focused on building a portfolio mix to optimise value for all stakeholders, and in that framework, expanding the amount of Non-par business in a consistent and profitable manner," LIC Chairperson MR Kumar said. 

The first-year premium, also known as the new business premium, increased from 8,748.55 crore in the equivalent quarter of the previous fiscal to 9,724.71 crore in the December quarter. 

Single premium went from 32,190 crore to 42,117 crore, a 31% increase.

Net gain on investments, sold insurance, and other sources 

Net investment income increased 11% YoY to 84,889 crore from 76,574 crore in the corresponding period last year. 

The insurer, which relies heavily on an army of agents, reported that the number of policies sold in the nine months that concluded on December 31, 2022, increased by as much as 2% YoY to 1.29 crore.

The company's gross value of new business (VNB), a crucial indicator of future growth that quantifies expected profit from new premiums, came in at 7,187 crore, with VNB margins of 19.1%. 

In comparison to the December quarter of previous year, the operating expense ratio for the nine months ending December 2022 grew by 27 basis points to 15.26% from 14.99%. 

Assets under management (AUM) for LIC increased by 10.54% year over year as of December 2017 to reach 44.34 lakh crore from 40.12 lakh crore. 

From its non-participating fund, LIC has transferred $5,670 crore to the shareholders' fund. According to news reports, the insurance giant planned to transfer about $22 billion from policyholder funds into a fund designated for dividend payments or the issuance of bonus shares.

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