Insurance giant LIC saw its March quarter net profit rise nearly six-fold after a change in accounting policy. The fourth quarter's net profit was £1.34 billion, up 466% from £237.1 million in the same quarter last year.
The net profit for FY23 stood at £3.63 billion as compared to £404.3 million in the previous year - a nine-fold increase. The corporation’s assets under management (AUM) increased to £439 billion as of March 31, as compared to £408 billion in March 2022, a year-on-year increase of 7.7%.
The corporation has doubled its dividend to Rs 3 per share from Rs 1.5 last year. LIC’s new business value (VNB) grew 16. 5% to £1.15 billion. The Indian Embedded Value (IEV), a measure of the valuation of life companies, increased by 7. 5% to £58 billion.
Changes in accounting procedures during the current year led to the transfer of money from the non-par (non-participating policies) fund to the shareholders' account, which resulted in the accretion of £2.72 billion (net of tax), the amount for solvency margin. Surplus in non-par insurance is not distributed to policyholders.