Life Insurance Corporation of India (LICI) Q4 11/12 earnings summary

Executive summary

• FY12 total premium income was ₹202,802.90 crore, down 0.27% YoY; individual first-year premium grew 31.83% to ₹28,681.37 crore.

• Net total income fell to ₹287,315.38 crore from ₹299,272.63 crore, including a ₹21,084.43 crore negative linked-fund fair-value change versus a ₹2,091.95 crore positive change in FY11.

• Life fund reached ₹1,283,990.72 crore; valuation surplus was ₹25,624.58 crore, with FY12 surplus allocated 95:5 to policyholders and the government shareholder.

Financial highlights

• Total income before linked-fund fair-value changes was ₹308,399.81 crore, versus ₹297,180.68 crore in FY11; investment income rose to ₹90,266.87 crore from ₹77,666.69 crore.

• Policyholder payments were ₹118,733.76 crore, up from ₹112,346.52 crore; maturity claim payments reached ₹63,347.90 crore versus ₹49,547.74 crore.

• Shareholder-account profit after tax was ₹1,313.34 crore, compared with ₹1,171.80 crore in FY11.

• New individual business totaled 3.46 crore policies, sum assured/NCO of ₹497,229.06 crore and annual premium receivable of ₹25,625.81 crore.

Outlook and guidance

• FY13 new-business budget: 4.30 crore policies, ₹13,500 crore single premium, ₹31,500 crore non-single premium and ₹45,000 crore total premium.

• FY13 plans targeted sustained new-business growth amid an economic environment of slower growth, high inflation and elevated interest rates.