Life Insurance Corporation of India (LICI) Q4 06/07 earnings summary

Executive summary

• FY2006-07 total premium income rose 40.79% YoY to Rs 127,782.26 crore; total income reached Rs 175,527.08 crore, while life-fund operating surplus was Rs 73,943.39 crore.

• Shareholders’ profit after tax increased to Rs 773.62 crore from Rs 631.58 crore; valuation surplus for life business was Rs 15,156.19 crore.

• New business broadened across first-time insurance, social-security coverage and alternative distribution; bancassurance exceeded its policy and first-premium targets.

Financial highlights

• Total premium income rose 40.79% to Rs 127,782.26 crore from Rs 90,759.20 crore; investment income increased to Rs 40,572.40 crore from Rs 35,478.64 crore.

• Total income was Rs 175,527.08 crore versus Rs 132,146.88 crore; policyholder operating surplus was Rs 73,943.39 crore versus Rs 69,266.23 crore.

• Shareholders’ profit after tax was Rs 773.62 crore versus Rs 631.58 crore; no tax provision was recorded in the shareholder account.

• Total claims settled, including pension and group schemes, reached 135.31 lakh claims worth Rs 36,485.91 crore, versus 120.84 lakh claims worth Rs 28,472.99 crore.

Outlook and guidance

• FY2007-08 plan targeted 4.28 crore policies, single-premium business of Rs 22,242.52 crore and non-single-premium business of Rs 30,257.48 crore.

• Sustained growth in new business was the stated FY2007-08 objective; the 2006-07 new-business budget had been exceeded by bancassurance and alternate channels.