by Life Insurance Corporation of India (LIC) has reported a remarkable profit surge of 44% in the first quarter of the financial year 2023, at Rs 9,544 crore. This is the highest quarterly profit ever recorded by the insurance behemoth.
The profit surge was driven by a number of factors, including strong growth in premium income, investment income, and net gains on foreign exchange. Premium income grew by 20% to Rs 70,958 crore, while investment income grew by 19% to Rs 63,134 crore. Net gains on foreign exchange stood at Rs 2,358 crore.
The company’s expenses also grew by 17% to Rs 51,414 crore. However, the increase in expenses was lower than the growth in income, resulting in a higher profit.
LIC’s solvency ratio stood at 2.44 times as of March 31, 2023, which is well above the regulatory requirement of 1.5 times.
The company’s chairman, M R Kumar, said that the results were “encouraging” and that the company was “on track to achieve its ambitious targets”. He said that LIC would continue to focus on growth and profitability in the coming quarters.
LIC’s results are a sign of the strong performance of the Indian insurance industry. The industry is expected to grow at a CAGR of 15% to reach Rs 25 lakh crore by 2025.
LIC is the largest life insurer in India and accounts for about 27% of the market share. The company has a customer base of over 28 crore and has issued over 34 crore policies.
