Total premium income declined 8.34% to Rs 1,31,761.11 crore in the quarter ended 31 March 2023 as against Rs 1,43,745.92 crore posted in Q4 FY22.

For the full year, the insurer's net profit surged to Rs 36,397.39 crore in FY23 from Rs 4,043.12 crore posted in FY22. Total premium income rose 10.9% year on year to Rs 4,74,004.61 crore in FY23.

The life insurer said that the profit for FY23 comprises of an amount of Rs 27,240.75 crore (net of tax), which is 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 62.58% for FY 2022-23. Further (as per IRDAI) the total FYPI for LIC grew by 16.67% from Rs 1.98 lakh crore in FY 2022 to 2.32 lakh crore in FY 2023.

On an Annualised Premium Equivalent (APE) basis the total premium was Rs 56,682 crore for the year ended 31 March 2023 as compared to Rs 50,390 crore for year ended 31 March 2022 representing a growth of 12.49% YoY.

For FY 2023, 68.22% (Rs 38,667 crore) was accounted for by the Individual Business and 31.78% (Rs 18,015 crore) by the Group Business. The Individual business APE grew by 8.70% YoY during FY 2023. Also within the Individual business, on an APE basis the share of Par products and Non par product was 91.11% and 8.89% respectively. For FY 2023 the Group APE was at Rs 18,015 crore grew by 21.57% from Rs 14,818 crore recorded in the same period previous year.

The insurance behemoth sold 2.04 crore policies in the individual segment in FY23, registering a decline of 5.93% from 2.17 crore policies sold in the same period last year.

For the year ended 31 March 2023, the persistency ratios, on premium basis for the 13th month and 61st month were 77.09%, and 61.80%, respectively. The comparable persistency ratios for the corresponding year ended 31 March 2022 were 75.59% and 61%, respectively.

Meanwhile, the persistency ratios, on number of policies basis for the 13th month and 61st month were 64.28%, and 49.86%, respectively. The comparable persistency ratios for the previous year ended 31 March 2022 were 63.45% and 49.86%, respectively. Therefore the 13th month persistency has improved both on premium basis and on policy basis while the 61st month persistency has improved on premium basis.

LIC's assets under management (AUM) increased to Rs 43.97 lakh crore as on 31 March 2023 as compared to Rs 40.85 lakh crore on 31 March 2022, registering an increase of 7.65% YoY.

The yield on investments on policyholders funds excluding unrealized gains was 8.29% for FY23 as against 8.55% for FY22.

The solvency ratio for the year ended 31 March 2023 was 1.87 (before considering the proposed final dividend) and will be 1.86 (after consideration of dividend) as against 1.85 for the year ended 31 March 2022.

The Value of New Business (VNB) (gross) for the year ended 31 March 2023 was Rs 11,553 crore, representing an increase of 16.46% YoY. The net VNB margins for FY23 stood at 16.2% from 15.1% in FY22.

The Indian Embedded Value (IEV) of the corporation has been determined as Rs 5,82,243 crore as at 31 March 2023 as compared to Rs 5,41,492 crore as at 31 March 2022 and Rs 5,44,291 crore as at 30 September 2022. Therefore the IEV has grown by 7.53% on a year on year basis.

Siddhartha Mohanty, Chairperson, LIC said, “With the increase in profit, net VNB margin and IEV we are well positioned to continue our growth journey, in the service of the nation and its citizens. The regulatory initiatives towards Insurance for All by 2047 will present opportunities to grow for the sector and we intend to participate in that growth.”

The company's board has recommended final dividend of Rs 3 per equity share for FY23, which is subject to declaration by shareholders in AGM. The record date for the same is fixed on 21 July 2023.

Separately, the life insurer disclosed that it decreased its stake in NHPC from 5.203% to 3.186%. LIC sold ‬‬ 2,02,629,579 shares, or 2.017% equity, at an average cost of Rs 41.10 via open market sale during the period from 18 October 2022 to 23 May 2023.

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