India’s largest insurer LIC has reported a nearly sixfold growth in quarterly profits for the March 2023 quarter as its stock is trading more than 1% higher than its previous close.

Gross Premium Income for the quarter ended in March 2023 was Rs 1.32 lakh crores, down 8.33% annually but up almost 18% sequentially. Commission earned Rs 8,248.5 crores, growing 33.4% against the figures reported in December 2022. Profit for the quarter was Rs 13,191 crores, almost 6x times Rs 2,409 crores i.e. the profit reported for Q4FY22.

For FY23, the company’s Gross Premium Income came in at Rs 4.77 lakh crores, up 11% YoY. The company's market share improved to 62.58% as its Value of New Business improved by 16.5% while its margin surged by 110 bps. The persistency ratios, an indicator of customer loyalty, about the 13th and 61st month improved significantly but that of the 25th month declined.

The Yield on Policyholders’ funds declined by 21 bps and AUM improved by 7.65% to Rs 43.97 lakh crores. The solvency ratio grew to 1.87 while the Indian Embedded Value of the firm grew 7.53% to Rs 5.82 lakh crores. Profit for FY23 was Rs 35,997 crores, up more than 7x times from Rs 4,125 crores reported in FY22. 

The Board of the insurer has recommended a dividend of Rs 3 per share, 100% higher than last year, for FY23, equating to a dividend payout of Rs 1,897 crores for FY23. At the time of reporting, the stock of LIC was trading around Rs 603.10 per share, up 1.72%.