Life Insurance Corporation of India (LICI) Q4 09/10 earnings summary

Executive summary

• FY10 total premium income rose 18.32% YoY to ₹185,985.91 crore; first-year premium growth lifted market share to 64.86% by premium and 73.02% by policies.

• Life fund reached ₹999,517.59 crore; valuation surplus was ₹20,618.45 crore, with ₹1,030.92 crore representing the 5% government share.

Financial highlights

• Total income was ₹261,773.02 crore versus ₹217,274.36 crore; including linked-fund fair-value changes, net total income was ₹298,721.55 crore versus ₹200,280.65 crore.

• Premium income increased 18.32% to ₹185,985.91 crore; investment income was ₹67,197.89 crore, up from ₹56,582.79 crore.

• Total outgo was ₹108,728.37 crore versus ₹77,849.47 crore; policyholder payments rose to ₹80,134.20 crore from ₹53,250.37 crore.

• Shareholders’ account profit after tax was ₹106,071.68 lakh; life-business valuation surplus was ₹20,618.45 crore.

Outlook and guidance

• FY11 new-business budget targets 4.66 crore policies, ₹32,000 crore single premium, ₹22,000 crore non-single premium and ₹54,000 crore total premium.

• Growth plans emphasized continued new-business expansion, alongside increased use of direct marketing, bancassurance and rural distribution channels.