Insurance behemoth Life Insurance Corporation of India (LIC) on Thursday (February 8) said its board of directors has declared an interim dividend of ₹4 per equity share of the face value of ₹10 each, for the financial year 2023-24.
“The Board of Directors has declared the payment of an interim dividend of ₹ 4/- (Rupees Four only) per equity share of the face value of ₹10/- each, for the financial year 2023-24,” LIC said in a regulatory filing.
Read More: Noida, Delhi Witness Traffic Chaos Due To Farmers’ Protest; Check Routes, Traffic Diversion Details
“…the Board has fixed February 21, 2024 as the “Record Date” for the purpose of ascertaining the eligibility of shareholders of the corporation for payment of interim dividend. The said interim dividend will be paid within 30 days from the date of declaration,” the insurer said.
The total dividend outgo for LIC is ₹2,529 crore. Given the government’s ownership stake of 96.5%, it will receive ₹2,440 crore. Shareholders, excluding the government, will receive a dividend of ₹89 crore.
Net Profit
The Life Insurance Corporation reported a 49% year-on-year (YoY) jump in net profit at ₹9,441 crore for the third quarter that ended December 31, 2023. In the corresponding quarter last year, LIC posted a net profit of ₹6,334 crore, the company said in a regulatory filing.
Read More: RBI Governor Shaktikanta Das says new ‘framework’ for authentication of digital payments soon
Annualized Premium Equivalent
On an Annualized Premium Equivalent (APE) basis, the total premium was ₹35,790 crore for the nine months ended December 31, 2023. Of this, 65.67% (₹23,503 crore) was accounted for by the Individual Business and 34.33% (₹12,287 crore) by the Group Business. Within the Individual Business, the share of Par products on an APE basis was 85.96% (₹20,203 crore) and the balance of 14.04% (₹3,299 crore) was due to Non-Par products.
The Non-Par APE has increased from ₹2,213 crore for the nine months ended December 31, 2022, to ₹3,299 crore for the nine months ended December 31, 2023, registering a growth of 49.08%. Therefore, our Non-Par share of Individual APE which was 9.45% for the nine months ended December 31, 2022, has grown to 14.04% for the nine months ended December 31, 2023.
Read More: RBI announces offline transactions for Digital Rupee; here’s what new CBDC move means
Value of New Business
The Value of New Business (VNB) for the nine months ended December 31, 2023, was ₹5,938 crore as compared to ₹5,478 crore for the nine months ended December 31, 2022, registering a growth of 8.40%.
The net VNB margin for the nine months ended December 31, 2023, was 16.6% as compared to 14.6% for the nine months ended December 31, 2022. The Solvency Ratio as of December 31, 2023, improved to 1.93 as against 1.85 on December 31, 2022.
