Shares of Life Insurance Corporation of India (LIC) witnessed a remarkable surge of over 3 percent in morning to reach a new all-time high on February 9. This surge comes in the wake of the state-run insurer’s robust financial performance for the quarter ending December 2023.
LIC reported a significant 49 percent year-on-year increase in net profit, reaching Rs 9,441 crore. Meanwhile, its net premium income experienced a healthy growth of 4.67 percent year-on-year, amounting to Rs 1.17 lakh crore during the same period.
The noteworthy improvement in performance was primarily attributed to the increase in net income from investments and the expansion of net premium income. LIC Chairman Siddhartha Mohanty expressed optimism, stating, “This is just the beginning. We have several products lined up in the coming days. There is a lot of scope for improvement in certain areas.”
Moreover, LIC announced an interim dividend of Rs 4 per share for FY24, with February 21 set as the record date for shareholder eligibility. The total dividend payout is estimated at Rs 2,529 crore, with the government, holding a 96.5 percent stake, set to receive Rs 2,440 crore.
Despite a decrease in other income compared to the previous year, LIC successfully managed to reduce its gross non-performing assets (NPA) to 2.15 percent in Q3 FY24.
As of 11:18 am, LIC shares were trading at ₹1,087.85. Additionally, LIC’s market capitalization has crossed the Rs 7-lakh-crore milestone for the first time, positioning it as the fourth most valued company in India, surpassing Infosys. With an mcap of Rs 7.01 lakh crore, LIC now trails only Reliance, TCS, and HDFC Bank in terms of market capitalization.
