Life Insurance Corporation of India announced its Q4 results for the financial year 2023-24, showcasing a marginal rise in net profit. The company reported a net profit of ₹13,762 crore for the March quarter, up 2.5% from ₹13,421 crore in the corresponding period of the previous fiscal year. Alongside the financial results, LIC declared a final dividend of ₹6 per share for FY24, subject to shareholder approval.
The financial performance for the entire fiscal year ending March 31, 2024, also reflected positive growth. LIC’s PAT for FY24 stood at ₹40,676 crore, an increase of 11.76% compared to ₹36,397 crore in FY23. This growth is a testament to the company’s robust business strategy and its ability to maintain stability amidst a competitive market landscape.
A significant highlight of the financial report is the substantial growth in LIC’s Assets Under Management. As of March 31, 2024, the AUM surged to ₹51.2 lakh crore, marking a 16.48% year-on-year increase from ₹43.9 lakh crore on March 31, 2023. This impressive growth underscores LIC’s strong market position and effective asset management strategies.
LIC continues to dominate the Indian life insurance sector, retaining its position as the market leader with a market share of 58.87% in first-year premium income. This dominance is a clear indication of the company’s deep-rooted presence and trust among policyholders across the country.
The solvency ratio, a critical measure of an insurance company’s financial health, improved to 1.98 for FY24 from 1.87 in the previous fiscal year. This improvement reflects LIC’s sound financial management and its capability to meet long-term obligations.
On the stock market front, LIC’s shares have shown a positive trend. On the day of the results announcement, LIC’s shares closed at ₹1,037.6 apiece on the NSE, up 0.77% from the last closing price. Throughout the day, the shares traded higher, reflecting investor confidence in the company’s financial health and future prospects.
Since its listing in May 2022 at ₹867.2 per share, LIC’s stock has gained approximately 18%, recovering from initial dips below ₹600. Over the past year, the stock has seen a remarkable upward trajectory, gaining 69.7%, and a year-to-date rise of 19.5%. This recovery and growth highlight the market’s positive sentiment towards LIC’s performance and potential.
In the previous year’s March quarter, LIC’s consolidated net profit had seen a nearly five-fold increase to ₹13,190.79 crore, up 447% from ₹2,409.39 crore in the year-ago period. Despite the high growth in the previous year, the steady rise in the current quarter’s net profit indicates a stable performance. However, it’s worth noting that in Q4FY23, the company’s consolidated net premium income had dropped by 8% to ₹1.32 lakh crore from ₹1.44 lakh crore in Q4FY22.
The declaration of a final dividend of ₹6 per share for FY24 further signifies LIC’s commitment to returning value to its shareholders. This consistent dividend payout, along with the company’s strong financial performance, reinforces its reputation as a reliable and profitable investment.
