India's LIC June-quarter premium earnings jumps as coverage gross sales rebound – ReutersAugust 17, 2022
A safety guard walks previous logos of Life Insurance coverage Company of India (LIC) and Bombay Inventory Change (BSE) contained in the BSE constructing in Mumbai, India, Could 17, 2022. REUTERS/Niharika Kulkarni
BENGALURU, Aug 12 (Reuters) – Life Insurance coverage Company of India (LIC) (LIFI.NS) reported a 20.4% rise in June-quarter premium earnings on Friday, as easing COVID-19 restrictions boosted gross sales of insurance policies for the insurer that largely relies on its brokers.
The corporate, which drives its enterprise largely via a military of 1.3 million gross sales brokers, was hit by pandemic-led lockdowns final 12 months that disrupted the work of its brokers who concentrate on in-person engagement.
"Because the COVID state of affairs normalises, we’re seeing a bigger exercise on the bottom, subsequently bringing us again nearer to our mannequin of getting 'toes on avenue'," Chairperson M R Kumar mentioned.
LIC, India's largest insurer, mentioned internet premium earnings rose to 983.52 billion rupees ($12.34 billion) from 817.21 billion rupees a 12 months earlier, with almost a 60% leap within the variety of insurance policies offered.
The corporate's gross worth of recent enterprise (VNB), which measures anticipated revenue from new premiums and is a key gauge for future development, stood at 18.61 billion rupees, whereas VNB margins got here in at 13.6%.
We don't see a lot market volatility going ahead that would influence outcomes, Kumar mentioned in a press briefing, including that the insurer sees VNB margin at over 15% by the tip of the 12 months.
The corporate, synonymous with shopping for safety insurance policies in India, listed in Could following a report $2.7 billion preliminary public providing. It instructions a market share of over 60% by way of total premiums.
LIC's revenue for the three months ended June 30 stood at 6.83 billion rupees, in contrast with 29.4 million rupees within the COVID-hit quarter a 12 months in the past, the corporate mentioned in a regulatory submitting.
Shares of LIC have fallen about 22% since its Could itemizing, in comparison with a 23% rise in no. 2 rival SBI Life Insurance coverage (SBIL.NS) over the identical interval.
($1 = 79.6830 Indian rupees)
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