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Life Insurance coverage Company of India on Thursday reported 49% rise in third-quarter web revenue, because it moved extra money to a shareholders’ fund to shore up its backside line.
The corporate posted standalone web revenue of Rs 9,444 crore for the quarter ended December 31, as towards Rs 6,334 crore within the year-ago interval.
i Siddhartha Mohanty, Chairperson, LIC, mentioned: “Our constant and centered strategy in direction of diversifying and altering our product combine is now yielding outcomes at a sooner tempo. The identical is obvious within the rise within the share of Non Par enterprise on APE foundation to 14.04% of our whole particular person enterprise for the primary 9 months of FY 2024. The truth that that is additionally accompanied by 200 bps enhance within the VNB margin ranges to 16.6% is an indicator that our strategic interventions are delivering within the method that we envisaged.
“We need to make it possible for each motion of ours is worth accretive to all stakeholders. We’ll relentlessly pursue our focused product and channel combine with the assist of all our workers, company power and channel companions. We’re dedicated to creating new merchandise designed to satisfy the evolving wants of our prospects. With our digital transformation challenge underway, we’re assured of constructing vital enhancements in our enterprise processes.”
The PSU insurer’s board permitted interim dividend of Rs 4 per share.
On Thursday, LIC’s scrip on BSE closed buying and selling 6.5% greater at Rs 1,112.
The corporate transferred Rs 7,692 crore from its non-participating fund to a shareholders’ fund for the quarter, it mentioned. LIC had transferred Rs 5,670 crore within the 12 months in the past quarter.
The premium LIC collects from ‘non-participating’ insurance policies, which have mounted returns, is parked in a non-participating fund.
Since 2022, it has been transferring a few of this each quarter to a shareholders’ fund, aiding its revenue. LIC had mentioned the transfers had been to shore up its solvency margin.
Its solvency ratio, the measure of an insurer’s capability to satisfy its long-term debt obligations, improved to 1.93 within the third quarter from 1.85 a 12 months in the past.
Web premium revenue rose practically 4.6% as its whole premium for December practically doubled year-over-year after registering declines within the earlier two months.
With inputs from Reuters
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