LIC third quarter net profit jumps to Rs 235 crore

Life Insurance Corporation of India (LIC) on Friday announced that its third-quarter profit for the financial year 2021-22 stood at Rs 234.9 crore as compared to Rs 90 lakh in the corresponding quarter in the previous year.

According to the LIC website, the profit of the first nine months of FY22 i.e. April-December 2021, jumped to Rs 1,642.78 crore from Rs 7.08 crore in the corresponding period a year earlier.

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On January 25, LIC had reported a profit after tax (PAT) of Rs 1,437 crore for the first half of the financial year as compared with Rs 6.14 crore in the year-ago period.

The state-run insurer had booked profit worth Rs 29,102 crore from the sale of investments in the first six months of FY22.

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The first-year premium for the IPO-bound company rose to Rs 8,748.55 crore from Rs 7,957.37 crore in the same quarter last year. Renewal premium stood at Rs 56,822.49 crore, up from Rs 54,986.72 crore in the year-ago quarter.

LIC’s total premium rose 0.78% to Rs 97,761.20 crore compared with Rs 97,008.05 crore.

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In February, LIC filed its draft red herring prospectus (DRHP) with market regulator Securities Exchange Board of India (SEBI) for its public issue. The government aims to offload a 5% stake in the insurer to raise over Rs 60,000 crore.

The IPO would comprise an offer for sale (OFS) of 31,62,49,885 equity shares by the government, which owns a 100% stake in the insurance giant. A total of 50% of the net issue would be reserved for qualified institutional buyers (QIBs), whereas non-institutional buyers will have 15% of shares allocated for them. For retail investors, 35% of the offer has been set aside.

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According to a CNBC TV18 report, the LIC IPO could be pushed to the next financial year as the government is expected to hold a meeting to reassess the timing because of the Russia-Ukraine war.