InvestorQ : How were LIC quarterly results for FY22 and the fourth quarter?
Anu Biswas made post

How were LIC quarterly results for FY22 and the fourth quarter?

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Ria Jain answered.
9 months ago
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For the Q4 FY22 quarter, LIC reported 11.6% higher revenues at Rs212,230 crore. It was the growth in net premium income which drove most of the growth in top line as the investment income was almost flat on a yoy basis. There was solid growth across first year premiums and renewal premiums as well as in single premium policies in the fourth quarter as well as during the full year FY22 for LIC. Here are the key financials for perusal.

Life Insurance Corp

Rs in Crore

Mar-22

Mar-21

YOY

Dec-21

QOQ

Total Income

₹ 2,12,230

₹ 1,90,099

11.64%

₹ 1,75,277

21.08%

Net Profit

₹ 2,409

₹ 2,917

-17.41%

₹ 211

1040.27%

Diluted EPS

₹ 3.81

₹ 4.61

₹ 0.33

Net Margins

1.14%

1.53%

0.12%

Solvency Ratio

1.850

1.760

1.770

Expense Mgmt Ratio

13.54%

13.67%

14.33%

Policy Holder Liability Ratio

364.01

535.48

450.08

  

However, despite positive growth in top line revenues, the net profits fell by 17% on account of the higher claims paid in the Q4FY21 quarter. During the quarter, LIC has also transferred a larger sum to other reserves to take care of actuarial liabilities in the future. This is more as a measure of abundant caution. For the fourth quarter, gross NPAs were relatively lower at 6.03% compared to 7.78% in the previous corresponding quarter.

The net NPAs at 0.04% indicates that the potential losses are already provided for. LIC has an expense management ratio of 13% to 14% which is roughly 300 bps lower than private sector counterparts. LIC has declared a dividend of Rs1.50 per share for FY22, which translates into dividend pay-out ratio of 23.46%.

For FY22, LIC registered 6.1% higher net premium income of Rs427,419 crore and net profits of Rs4,043 crore. The yield on investments was 8.55% (excluding unrealized gains) compared to 8.69% in FY21. LIC added 2.17 crore new policies during the year with individual policies market share of 74.6%. It had a much more imposing share of 89.07% in the group insurance business.

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