Life Insurance Corporation of India (LICI) Q4 12/13 earnings summary

Executive summary

• FY2012-13 total premium income was ₹208,589.72 crore, up 2.85% YoY; net total income reached ₹326,341.88 crore after a ₹7,373.19 crore fair-value loss on linked business.

• Life fund rose to ₹1,433,103.14 crore; valuation surplus was ₹28,727.64 crore, with 95% allocated to policyholders and 5% to the shareholder.

• India’s life insurers faced a softer market: first-year premium fell 6.32%, while the reported market share in total first-year premium was 71.25%.

Financial highlights

• Total income was ₹333,715.07 crore, including ₹103,882.10 crore from investments; after the linked-business fair-value adjustment, net total income was ₹326,341.88 crore.

• Shareholders’ account profit after tax was ₹143,759.25 lakh, versus ₹131,334.29 lakh in FY2011-12; tax provision was ₹5,233.24 lakh.

• Total outgo reached ₹177,229.46 crore; policyholder payments were ₹136,289.64 crore, including ₹64,534.46 crore in maturity claims and ₹9,413.53 crore in death claims.

• Gross premium income was ₹208,803.58 crore; net premium income was ₹208,589.72 crore, compared with ₹202,802.90 crore a year earlier.

Outlook and guidance

• FY2013-14 new-business budget: 4.05 crore policies and ₹33,000 crore total premium, comprising ₹14,190.65 crore single premium and ₹18,809.35 crore non-single premium.

• Planned continued new-business growth amid an expected modest near-term economic recovery.