#LICI Quarterly result!

LIC is in the news on Friday as its quarterly result shows that its Profit after tax rose by 1012% YoY. Outstanding right? Not exactly!

🌟Result summary:

➡️ Profit increased by 1012% from 1,433 crores in Q2FY22 to 15,952 crores in Q2FY23.
➡️ Revenue from premium income rose 27% to 132,104 crores in Q2FY23.
➡️ Other Income from its investments rose by 9.9% from 76,533 crores in Q2FY22 to 84,103 crores in Q2FY23.
➡️ Gross NPA reduced to 5.6% in Q2FY23 from 6.57% in Q2FY22.

🌟Result Interpretation:

Profit % change is a one-time phenomenon occurred upon the accounting policy change approved by the Board of Directors of LIC and IRDAI. It has transferred 14,271 crores from the non-par shareholder’s accounts. The amount comprises Rs 5,580.71 crore for the quarter that ended September, Rs 4,148.77 crore for the quarter that ended June, and Rs 4,542.30 crore for the quarter that ended March. Ahead of its initial public offering (IPO), the insurer bifurcated its policyholders’ funds into participatory and non-participatory funds. Non-participatory life insurance contracts are where no policy dividends are paid and the entire profit from non-par policies belongs to the shareholders.

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