The life insurer said that the profit for Q1 FY24 comprises of an amount of Rs 7,491.53 crore (net of tax), pertaining to the accretion on the Available Solvency Margin, transferred from Non Par fund to shareholders account.

In terms of market share measured by first year premium income (FYPI) (as per IRDAI) LIC has maintained its leadership in Indian life insurance business with a market share of 61.42% for the quarter ended 30 June 2023.

On an Annualised Premium Equivalent (APE) basis the total premium was Rs 9,532 crore for the quarter ended 30 June 2023 as compared to Rs 10,270 crore for quarter ended 30 June 2022 representing a decline of 7.19% YoY.

For Q1 FY24, 62.42% (Rs 5,950 crore) was accounted for by the Individual Business and 37.58% (Rs 3,582 crore) by the Group Business.

The insurance behemoth sold 32.16 lakh policies in the individual segment in Q1 FY24, registering a decline of 12.64% from 36.81 lakh policies sold in the same period last year.

The persistency ratios on premium basis up to the quarter ended June 30 2023 for the 13th month and 61st month were 78.37% and 62.73% respectively. The comparable persistency ratios up to the corresponding quarter ended June 30 2022 were 77.85 % and 62.43% respectively.

Meanwhile, the persistency ratios on number of policies basis up to the quarter ended June 30th 2023 for the 13th month and 61st month were 66.15% and 50.79% respectively. The comparable persistency ratios up to the corresponding quarter ended June 30th 2022 were 65.96%, and 51.23% respectively.

LIC's assets under management (AUM) increased to Rs 46.11 lakh crore as on 30 June 2023 as compared to Rs 41.02 lakh crore on 30 June 2022, registering an increase of 12.41% YoY.

The yield on investments on policyholder's funds excluding unrealized gains was 8.78% for Q1 FY24 as against 7.74% for Q1 FY23.

The solvency ratio as on 30 June 2023 was 1.89 as against 1.88 as on 30 June 2022.

The Value of New Business (VNB) (gross) for the quarter ended 30 June 2023 was Rs 1,302 crore, representing a decrease of 6.8% YoY. The net VNB margins for Q1 FY24 stood at 13.7% from 13.6% in a year ago period.

Siddhartha Mohanty, chairperson, LIC said, “During the first quarter of this financial year, we have achieved increase in our non-par product mix as a percentage of the overall individual business. Further, our efforts to improve persistency across cohorts are beginning to show results. Our overall expense ratio has become better and our margins are stable on year-on-year basis. Simultaneously we continue to work on strategies for diversifying the channel mix.”

LIC has been providing life insurance in India for more than 65 years and is the largest life insurer in the country.