Life Insurance Corporation of India (LICI) Q4 05/06 earnings summary

Executive summary

• FY2005-06 premium income reached ₹90,759.20 crore, up 20.88% YoY; total income was ₹132,146.88 crore, and life fund stood at ₹463,147.62 crore.

• New business expanded across individual, group, rural and linked products; first-time insurance covered 243.65 lakh people for ₹2,20,523.50 crore sum assured.

• Total investments were ₹5,24,017.25 crore at March 31, 2006; the life business recorded ₹621.77 crore surplus, with ₹631.58 crore profit after tax in the shareholders’ account.

Financial highlights

• Total premium income was ₹90,759.20 crore vs ₹75,083.37 crore in FY2004-05; investment income was ₹35,478.64 crore vs ₹32,977.50 crore.

• Total income was ₹1,32,146.88 crore vs ₹1,12,392.74 crore; shareholder-account profit after tax was ₹631.58 crore vs ₹708.37 crore.

• Life-fund valuation surplus was ₹621.77 crore vs ₹696.60 crore; ₹621.77 crore, equal to 5% of valuation surplus, was provided for payment to the Central Government.

• Claims settled totaled 120.84 lakh for ₹28,472.99 crore, compared with 115.04 lakh for ₹23,642.54 crore in FY2004-05.

Outlook and guidance

• FY2006-07 new-business budget targeted 3,72,55,000 policies, ₹12,021.63 crore in single premiums and ₹12,393.36 crore in non-single premiums.

• Alternate-channel FY2006-07 targets were 4,66,000 policies and ₹625 crore first-premium income.

• Strategy emphasized sustained new-business growth, wider distribution, rural reach and customer-oriented service.