The shares of Life Insurance Corporation of India(LIC) surged by 3 per cent following Prime Minister Modi’s remarks on the company’s resilience and it’s performance in its share market.
PM Modi said that many rumours were spread about the largest life insurer in the past and yet the stock was trading at record high levels.
The insurance behemoth surged as high as 5.8% in the early morning trade today after the company reported robust earnings in October-December quarter of FY 2023-24. The LIC stock opened at 4.4% gap up and hit its 52-week high of ₹1,175 on the BSE, which propelled LIC’s m-cap to ₹6.97 lakh crore.
At current share price, the LIC stock is trading a 11.59 % up from its one-year low of ₹530.21 touched on March 29, 2023.
LIC announced a robust 49% year-on-year surge in its net standalone profit to ₹9,444 crore for the third quarter of the fiscal year 2023-24.
The company's net premium also saw a notable uptick, rising by 5% year-on-year to ₹1.17 lakh crore compared to ₹1.11 lakh crore in the same quarter of the previous fiscal. Sequentially, LIC's net profit and premium witnessed a commendable 19% and 9% surge, respectively.
During the third quarter, the value of LIC's new business (VNB) witnessed a remarkable 46% increase, reaching ₹2,634 crore on a net basis, compared to ₹1,801 crore in the corresponding period last year. Notably, LIC's net VNB margin saw a substantial rise to 20%, up from 14.6% in the previous year's third quarter. However, the LIC group premium experienced a decline of 20% during Q3 FY24.
The LIC board has declared the payment of an interim dividend of ₹4 per equity share of face value ₹10 each, for the fiscal year 2023-24.
Siddhartha Mohanty, chairperson of LIC, expressed satisfaction with the company's performance, stating, "Our consistent and focused approach towards diversifying and changing our product mix is now yielding results at a faster pace."
LIC asserts its dominance in the market with a substantial 58.90% share. Despite a slight decrease, the total premium for the nine months ended December 31, 2023, remained substantial at ₹3,22,776 crore compared to ₹3,42,244 crore in the previous year's corresponding period.
Additionally, the company's net non-performing assets (NPAs) in the policyholders' fund decreased to ₹8.01 crore as of December 31, 2023, compared to ₹10.94 crore in the corresponding period of the previous year.
Follow us
