Life Insurance Corporation of India (LIC) is planning to enter the medical health insurance market and is exploring potential acquisitions to facilitate this enlargement. This initiative follows a proposal to introduce composite insurance coverage firms, which might enable life insurers to supply hospitalisation and indemnity protection, pending an modification to the Insurance Act.
Record-breaking dividend payout
LIC has introduced a remaining dividend of Rs 6 per share for the fiscal yr 2023–24, marking the best dividend payout in its historical past and doubling final yr’s Rs 3 per share. The file date for the payout is ready for July 19.
Market context and regulatory push
India’s insurance coverage market stays considerably under-penetrated, with fewer than 23 million medical health insurance insurance policies masking 550 million people by the tip of the 2022–23 fiscal yr. The authorities and regulatory authorities are eager to broaden well being protection, and LIC’s entry into the sector is anticipated to assist this effort.
Financial efficiency highlights
LIC reported a marginal 2% improve in internet revenue, reaching Rs 13,763 crore within the fourth quarter ending March 2024, up from Rs 13,428 crore in the identical interval the earlier yr. Total earnings rose to Rs 2,50,923 crore from Rs 2,00,185 crore year-on-year. First-year premium earnings improved to Rs 13,810 crore, whereas renewal premium earnings elevated to Rs 77,368 crore.
Annual efficiency and dividend declaration
For the fiscal yr ending March 2024, LIC’s revenue stood at Rs 40,676 crore, up from Rs 36,397 crore within the earlier yr. Total premium earnings was Rs 4,75,070 crore. The board really useful a remaining dividend of Rs 6 per share and an interim dividend of Rs 4, totalling Rs 10 per share for the yr.
Market management and plans
LIC continues to guide the Indian life insurance coverage market with a 58.87% market share by First Year Premium Income (FYPI). Chairman Siddhartha Mohanty emphasised the company’s give attention to strategic interventions to maximise market share and create worth for stakeholders. LIC goals for double-digit topline development within the present monetary yr, pushed by new product launches and digital transformation initiatives.
Value of recent business and monetary metrics
The Value of New Business (VNB) for FY24 was Rs 9,583 crore, a 4.66% improve from the earlier yr. The internet VNB margin rose to 16.80%, up from 16.20%. The solvency ratio improved to 1.98, and Assets Under Management (AUM) elevated to Rs 51,21,887 crore, a 16.48% year-on-year development. The bonus allotted to taking part policyholders was Rs 52,955.87 crore for FY24, in comparison with Rs 49,439.56 crore the earlier yr.
Also learn | Tax Savings: How working girls can save tax and get good returns | Check greatest choices
Source: www.indiatvnews.com
