Total premium income stood at Rs 1,07,396.77 crore in Q2 FY24, down 18.7% from Rs 1,32,104.14 crore posted in Q2 FY23.

The profit after tax (PAT) for the half year ended 30 September 2023 stood at Rs 17,469 crore. The current period profit includes an amount of Rs 13,768 crore (net of tax), pertaining to the accretions on the available solvency margin, transferred from non-par fund to shareholders account.

The PAT for similar six month period ended 30 September 2022 was Rs 16,635 crore is not comparable since it included an amount of Rs 4,542 crore (net of tax) pertaining to the accretions on the available solvency margin for the last quarter of FY 2021-22 which was transferred from non-par fund to shareholders account on 30 September 2022, the company stated.

Total premium income declined 10.72% year on year to Rs 2,05,759.52 crore in H1 FY24.

In terms of market share measured by first year premium income (FYPI) (as per IRDAI), LIC continues to be the market leader by market share in Indian life insurance business with overall market share of 58.50%. For six months ended 30 September 2023, LIC had a market share of 40.35% in Individual business and 70.26% in the group business.

On an annualised premium equivalent (APE) basis the total premium was Rs 22,627 crore for H1 FY24. Of this 64.69 % (Rs. 14,638 crore) was accounted for by the individual business and 35.31% (Rs 7,989 crore) by the group business.

Within the individual business the share of par products on APE basis was 89.24% (Rs 13,063 crore) and balance 10.76% (Rs 1,575 crore) was due to non-par products. The non-par APE has increased to Rs 1,575 crore in H1 FY24, registering growth of 19.77% YoY. Therefore, our non-par share of individual APE which was 8.98% for the six month period ended 30 September 2022 has grown to 10.76% for the six month period ended 30 September 2023.

The insurance behemoth sold 80.60 lakh policies in the individual segment in H1 FY24, registering a decline of 3.57% from 83.59 lakh policies sold in the same period last year.

For H1 FY24, the persistency ratio on premium basis for the 13th month and 61st month were 78.49% and 62.53%, respectively. The comparable persistency ratios for the corresponding half year ending 30 September 2022 were 77.62% and 62.77% respectively.

Meanwhile, the persistency ratio on number of policies basis for the 13th month and 61st month were 66.80 % and 50.35%, respectively. The comparable persistency ratios for the corresponding half year ended September 30th,2022 were 65.21% and 51.61%, respectively. Therefore, the persistency has improved both on premium and number of policies basis for 13th month.

LIC's assets under management (AUM) increased to Rs 47.43 lakh crore as on 30 September 2023 as compared to Rs 42.93 lakh crore on 30 September 2022, recording a growth of 10.47% YoY.

The yield on investments on policyholders funds excluding unrealized gains was 9.06% for H1 FY24 as against 8.32% for H1 FY23.

The solvency ratio as on 30 September 2023 improved to 1.90 as against 1.88 on 30 September 2022.

The value of new business (VNB) for H1 FY24 was at Rs 3,304 crore, down 10.14% as against Rs 3,677 crore for the six month ended 30 September 2022. The net VNB margin for H1 FY24 was constant at 14.6 % as compared to H1 FY23.

The Indian embedded value (IEV) as on 30 September,2023 has been determined as Rs 6,62,605 crore as compared to Rs 5,44,291 crore as on 30 September 2022, registering an increase of 21.74% over the previous year.

Siddhartha Mohanty, chairperson, LIC said - “ During the first six months of this financial year, we have been able to implement strategies successfully to enhance the share of non-par products in our overall individual business. The current VNB margins are an indicator of our initiatives delivering the objective of maintaining profitability as we change direction. We are conscious of the market dynamics in certain parts of our business and are working towards profit-oriented consolidation. The distribution mix is also more diversified with increase in share of Bancassurance and alternate channels. We continue to remain focused on creating higher customer value through digital innovations.”

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

Shares of Life Insurance Corporation of India declined 0.68% to end at Rs 610.55 on Friday, 10 November 2023.