Insurance behemoth LIC on Monday posted a 17 per cent decline in consolidated net profit to Rs 2,409 crore for the fourth quarter ended March 2022. The insurer had earned a profit of Rs 2,917 crore in the same quarter a year ago. This is the first-ever quarterly result of LIC after being listed on bourses earlier this month.
The total income of the insurer during the March quarter increased to Rs 2,12,230.41 crore, from Rs 1,90,098 crore in the same period of the previous fiscal, LIC said in a regulatory filing. LIC's income from first-year premium rose to Rs 14,663.19 crore as against Rs 11,053.34 crore in the same quarter previous fiscal.
The income from renewal premium rose 5.37 per cent to Rs 71,472.74 crore, while from single premium increased by 33.70 per cent to Rs 58,250.91 crore during the quarter. For the entire financial year 2021-22, LIC reported a 38 per cent rise in profit at Rs 4,124.70 crore, from Rs 2,974.13 crore in the previous financial year.
The board of LIC has recommended a dividend of Rs 1.50 per equity share with a face value of Rs 10 each for the year ended March 31, 2022. Shares of the LIC closed at Rs 837.05, 1.89 per cent higher on the BSE.
Earlier this month, the government raised Rs 20,557 crore by diluting its 3.5 per cent stake in the LIC through the initial public offering (IPO), the country's biggest ever.
LIC shares were listed at a discount of 8.62 per cent at Rs 867.20 apiece on BSE over the issue price of Rs 949 a share.
The government sold over 22.13 crore shares or a 3.5 per cent stake in LIC through the IPO. The price band of the issue was Rs 902-949 a share. However, shares were allocated to investors on May 12 at the upper end of the price band.