LIC’s Q2 profit rises to record £1.6 bn

Wednesday 16th November 2022 06:03 EST

LIC has reported a record net profit of £1.59 billion for the September quarter, over 10 times the £143.3 million profit in the year ago period. The corporation had recorded a net profit of £68.2 million in the June quarter. LIC reported a 10% increase in net investment income to £8.41 billion. Other income rose multifold to £679.5 million from £4.5 million in the previous year.
Shares of LIC closed at Rs 628 on Friday last up 1. 2% over its previous close. At current prices, LIC is valued at £39.7 billion, down sharply from the £60 billion valuation during its initial public offering (IPO). The results were declared after market hours.
Unlike most businesses, the stock market valuation for a life insurance company is a reflection of the value of new business and the embedded value. These value of new business gives an indication of the corporation’s future earnings from the policies that it has issued during the quarter. The embedded value varies according to the value of assets and how much it is in excess of future liabilities.

comments powered by Disqus

to the free, weekly Asian Voice email newsletter