The positive aspects translate to a 17% rise over the fiscal ended March 2021 slightly below the 19% yr on yr progress recorded by the Nifty50 index through the interval.
Managing director Raj Kumar stated that the federal government managed life insurer will match the profitability of its personal sector counterparts within the subsequent 5 years.
Outcomes launched on Monday, the primary for the corporate since its itemizing earlier in Could, confirmed LIC reported a 18% drop in standalone web revenue for the fiscal fourth quarter, weighed by a rise in paid claims at the same time as web premium earnings after adjusting for reinsurance prices rose.
Kumar stated the numbers are stictly not comparable yr on yr as a result of there are some calculations like worth of recent enterprise or embedded worth that are but to be calculated on the finish of March and since that is the primary time the corporate is asserting quarterly outcomes.
“Earlier than this we now have all the time introduced solely the yearly numbers so the final yr’s quarterly numbers might not be strictly comparable which is why the drop in revenue yr on yr needs to be seen in a context. For the fiscal yr ended March 2022 we now have recorded a progress,” Kumar stated.
For the fiscal yr ended March 31, web revenue elevated 39% to Rs 4,043 crore from Rs 2,901 crore the yr earlier than, helped by a Rs 1,299 crore provision write-back. The corporate additionally introduced a 15% dividend for the fiscal yr, the primary in its historical past.
Kumar nevertheless acknowledged that earnings had been impacted as a result of elevated claims funds through the yr.
Whole claims paid through the quarter elevated 19% yr on yr to Rs 1.21 lakh crore. Kumar stated the upper claims had been a residual influence of the Covid pandemic and in addition as a result of maturity of 4 excessive worth merchandise for which paynents had been made through the quarter.
LIC has a Rs 7400 crore reserve fund to handle Covid claims however Kumar stated he believes the worst of the pandemic is behind us.
“There was some residual influence of Covid and covid associated claims. General Covid impacted the corporate final fiscal and one hopes that we don’t see any extra waves. 4 of our merchandise with claims of Rs 5 lakhs and above additionally matured which is why the claims paid is excessive,” he stated.
Kumar stated going ahead elevated use of expertise and bigger partnerships will assist LIC preserve its numero uno standing.
“We’re already current in 60,000 shops throughout the nation and we now have 17 tie ups with banks. We are going to proceed to spend money on expertise which can assist us carry down prices. As rates of interest rise we anticipate individuals to maneuver in direction of assured returns and we’re nicely positioned to benefit from this shift,” Kumar stated.
The general public sector life insurer dominates the Indian market with greater than a 70% market share.
Revenue from first yr premium, a key matrix for a life insurance coverage firm, elevated 33% to Rs 14,614 crore within the quarter ended March 2022 from Rs 10,958 crore a yr in the past. Revenue from renewal premium rose 5% to Rs 71,158 crore from Rs 67,456 crore a yr earlier.