LIC performance for Year ended March 31, 2023 (FY 2023)
The Board of Directors of Life Insurance Corporation of India (“LIC”) approved and adopted the standalone and consolidated financial results for the year ending March 31st, 2023. Below are the key highlights of our standalone results.
For the year ended March 31st,2023, LIC registered an increase of 10.90 % in the Total Premium Income at Rs.4,74,005 crore as compared to Rs. 4,27,419 crore for the previous year ended March 31st, 2022.
In terms of market share measured by First Year Premium Income (FYPI) (as per IRDAI) LIC has maintained its leadership in Indian life insurance business with a market share of 62.58% for FY 2022-23. Further (as per IRDAI) the total FYPI for LIC grew by 16.67% from Rs. 198 lakh crore in FY 2022 to 2.32 lakh crore in FY 2023.
The Profit after Tax (PAT) for the year ended March 318t 2023 was Rs. 36,397.40 crore as compared to Rs. 4,043.12 crore for the previous year ended March 31st, 2022. The profit for FY 2022-23 comprises of an amount of Rs. 27,240,75 crore (net of tax), which is pertaining to the accretion on the Available Solvency Margin, transferred from Non Par fund to shareholders account,
The Board of Directors have recommended a dividend of Rs 3/- per share translating to a dividend payout of Rs. 1,897 crore.
* Market leadership with 62.58% market share with 16.67% FYPI growth
* Profit After Tax at Rs. 36,397 crore
* Board recommends dividend of Rs. 3/- Per Share (Previous Year Rs
* 1.50/-per share)
* Value of New Business (Gross) grows by 16.46% to Rs.11,553 crore
* VNB margin (Net) increased by 110 bps to 16.2%, highest since listing
* Indian Embedded Value (IEV) increases by 7.53% to Rs.5.82 lakh crore
* AUM increased by 7.65% to Rs. 43.97 lakh crore
* 2.04 crore polices sold in the individual segment during FY 23
* 13th th Persistency on premium basis improves by 150 bps to 77.09%
On an Annualised Premium Equivalent (APE) basis the total premium was Rs. 56,682 crore for the year ended March 31st,2023 as compared to Rs. 50,390 crore for year ended March 31st 2022 representing a growth of 12 49% year on year. For FY 2023, 68 22% (Rs, 38,667 crore) was accounted for by the Individual Business and 31.78% (Rs, 18,015 crore) by the Group Business. The Individual business APE grew by 8,70% year on year during FY 2023. Also within the Individual business, on an APE basis the share of Par products and Non par product was 91.11% and 8.89% respectively. For FY 2023 the Group APE (Rs. 18,015 crore) grew by 21,57% over the previous year ending March 31st 2022 (Rs. 14,818 crore).
For the year ended March 31st, 2023, the persistency ratios, on premium basis for the 13th month and 61st month were 77.09%, and 61.80%, respectively. The comparable persistency ratios for the corresponding year ended March 31st 2022 were 75.59% and 61%, respectively.
For the year ended March 31st, 2023, the persistency ratios, on number of policies basis for the 13th month and 61st month were 64.28%, and 49.86%, respectively. The comparable persistency ratios for the previous year ended March 31st,2022 were 63.45% and 49.86%, respectively. Therefore the 13th month persistency has improved both on premium basis and on policy basis while the 61st month persistency has improved on premium basis.
The Assets Under Management (AUM) increased to Rs. 43.97 lakh crore as on March 31st 2023 as compared to Rs. 40.85 lakh crore on March 31st 2022 registering an increase of 7.65% year on year.
The Yield on Investments on policyholders funds excluding unrealized gains was 6.29% for year ended March 31st ,2023 as against 8.55% for year ended March 31st 2022.
The Solvency Ratio for the year ended March 31st 2023 is 1.87 (before considering the proposed final dividend of Rs 3/- per share for FY23) and will be 1.86 (after consideration of the proposed final dividend for FY23) as against 1.85 for the year ended March 31st 2022.
The Value of New Business (VNB) (Gross) for the year ended March 31st,2023 was Rs.11,553 crore as against Rs.9,920 crore for the previous year ending March 31st, 2022 representing an increase of 16.46%. The VNB margins for the year ended March 31st,2023 are 16.2% (Net) as compared to 15.1% (Net) for year ended March 31st 2022. The Gross VNB of the Individual business was Rs. 7,571 crore and for Group business was Rs. 3,982 crore for year ended March 31st,2023. The Gross VNB margins for the Individual and Group business were 19.6% and 22.1%, respectively. Within the Individual business, the Par business, Non Par business (including Linked business) had Gross VNB margins of 14.6% and 70.4%, respectively.
The Indian Embedded Value (IEV) of the corporation has been determined as Rs.5,82,243 crore as at March 31st ,2023 as compared to Rs. 5,41,492 crore as at March 31st 2022 and Rs. 5,44,291 crore as at September 30th,2022. Therefore the IEV has grown by 7.53% on a year on year basis.
We are continuously making efforts to adopt technology and enhance our digital presence and facilities for the benefit of our customers.
Siddhartha Mohanty, Chairperson, LIC said:- “Our results demonstrate the resilience of our business, built in every nook and corner of the country, over a period of more than six decades. Our efforts towards enhancing the share of non par products in the overall product mix are bearing fruits. With the increase in profit, net VNB mangin and IEV we are well positioned to continue our growth journey, in the service of the nation and its citizens, The regulatory initiatives towards Insurance for All by 2047 will present opportunities to grow for the sector and we intend to participate in that growth. As we move forward to grow our business further, we will endeavour to create superior value for all our stakeholders. Finally we thank all our policyholders, agents, employees and shareholders for maintaining their faith in us”
Kev operational and financial metrics: