LIC first half profit zooms ahead of IPO
Net profit increased led by a 12% in income from investments including profit from the sale of investments, interest, dividends and rent during the six months ended September 2021. Total income from investments increased to Rs 1.49 lakh crore from Rs 1.33 lakh crore a year ago.
The rise in income from investments masked a tepid 1% growth in net premiums after considering reinsurance. Net premiums increased to Rs 1.86 lakh crore from Rs 1.84 lakh crore a year earlier. The rise in profit was also despite a 8% year on year rise in benefits and bonuses paid which increased to Rs 3.08 lakh crore from 2.86 lakh crore a year earlier.
The results from the government owned insurance behemoth are significant because it is on the cusp of filing its draft red herring prospectus (DRHP) for a possible listing before the end of March 2022. The government, the sole owner of LIC, expects to garner more than ₹1 lakh crore from the share sale in India’s largest insurance company, more than five times the ₹18,300 crore raised by financial services firm
‘s parent One97 Communications a couple of months ago, which was the largest IPO in India so far.
“The total premium in individual pension (non-linked) grew by Rs. 4,432 crore to Rs. 5,636 crore; and that of Group (non-linked) grew by Rs. 90 crore to Rs. 66,295 crore.
In H1FY22, the total premium in individual life (linked) grew by Rs. 737.08 crore to Rs. 1,085 crore,” LIC said in a press release.
Investments of policyholders have grown by Rs. 5.9 lakh crore to Rs. 37.72 lakh crore in the first half of the current fiscal year. The company’s solvency ratio was 183.37% higher than the 150% required by regulations.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.