Home / Business and Economy / LIC Profit Surges 17% on Tax Cut Demand
LIC Profit Surges 17% on Tax Cut Demand
5 Feb
Summary
- LIC profit rose 17% to 129.58 billion rupees in Q3.
- Annualised premium equivalent sales climbed 50.5%.
- Value of new business increased by 65% for the quarter.
Life Insurance Corporation of India (LIC) announced a substantial 17% increase in its third-quarter profit, reporting 129.58 billion rupees for the three months ending December 31. This financial achievement was bolstered by enhanced premium collections.
The surge in demand for insurance products was largely attributed to the government's recent decision to eliminate the 18% tax on individual life insurance policies, making them more accessible and appealing to consumers.
Key performance indicators demonstrated strong momentum. Annualised premium equivalent sales saw a significant jump of 50.5%, reaching 149.73 billion rupees. Furthermore, LIC's value of new business, representing expected profit from new policies, grew by an impressive 65% to 31.77 billion rupees.
The insurer also focused on increasing its share of high-margin products, which, along with larger ticket sizes across various offerings, helped to bolster company margins. VNB margins from new business expanded to 18.8% over the nine months ending December. The insurer's solvency ratio improved to 2.19, indicating a strong ability to meet financial obligations.
