Jobaaj Stories
Bringing relief to investors, India's largest insurance body LIC reported a manifold growth in profits for the quarter that ended in September 2022.
Profit for the quarter ended in September 2022 stood at Rs 15,952 crores, up 1,013% YoY when compared to Rs 1,433 i.e. the profit reported in the corresponding quarter last year. Moreover, the company's profit surged over 20x times on a quarterly basis.
Zomato corrects its financials, losses reduced by 42%, read more.
According to the company's filing, the massive surge in profit was on account of a change in accounting policy. The result of such a change was a “transfer of the accretion in the available solvency margin from non-participating (non-par) to shareholders funds amounting to Rs 14,271.80 crore (net of tax) pertaining to the accretion on the available solvency margin from non-par to shareholder’s account”.
Its first-year premiums, which are a sign of business growth, came in at Rs 9,125 crores, up 11.3% YoY. Renewal premium rose 2% to Rs 56,156 crores while single premium increased 62% to Rs 66,901 crores.
The company's net premium income, its main income, grew 27% to Rs 1.32 lakh crores as opposed to Rs 1.04 lakh crores reported in the corresponding quarter last year.
India's largest insurer saw improvement in its ratios during the quarter as the solvency ratio grew from 1.83 last year to 1.88 this year. Gross NPAs saw a nominal decline while Net NPAs declined a whopping 93.4% to Rs 12.7 crores.
Moreover, data from IRDAI has shown that LIC's market share has improved from 447 bps to 67.72% while that of private players dropped to 32.28%.
Shares of LIC saw one of the sharpest spikes since its listing as it reclaimed the Rs 650 mark it had fallen from in late September. It currently trades at around Rs 654.90 per share.
Article by Aman Agarwal.
This news piece is brought to you in association with jobaaj.com
