Life Insurance Corporation of India (LICI) Q4 10/11 earnings summary

Executive summary

• FY2010-11 premium income rose 9.34% YoY to ₹203,358.05 crore; market share increased to 68.7% by first-year premium and 76.9% by policy count.

• Life fund reached ₹1,151,200.58 crore and valuation surplus ₹22,752.34 crore; FY2011-12 budget targets ₹54,000 crore of total premium income.

Financial highlights

• Total premium income was ₹203,358.05 crore versus ₹185,985.91 crore; total income was ₹297,180.68 crore, and net total income including linked-fund fair-value changes was ₹299,272.63 crore.

• Shareholders’ account profit after tax was ₹117,180.37 lakh versus ₹106,071.68 lakh; reported tax provision was nil.

• Total outgo rose to ₹147,589.64 crore from ₹108,728.37 crore; policy liabilities for non-linked business rose 17.38% to ₹985,392.06 crore.

• Claims settled totaled ₹57,490.29 crore across 1.90 crore claims, versus ₹53,535.82 crore across 2.16 crore claims in FY2009-10.

Outlook and guidance

• FY2011-12 new-business budget: 4.26 crore policies, ₹31,964 crore single premium, ₹22,036 crore non-single premium and ₹54,000 crore total premium.

• A non-unit-linked health insurance plan was planned for launch in Q1 FY2011-12; sustained new-business growth was the stated plan.