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LIC’s share price is currently trading 26% below its all-time high of ₹920 hit on its market debut on May 17, 2022. The insurance stock is down 28% from at its initial public offering (IPO) price of ₹949. LIC proved to be one of the worst performing initial public offerings (IPOs) of this year, eroding investors’ wealth by ₹1.8 lakh crore as market capitalization fell to ₹4.2 lakh crore per compared to valuation of around ₹6 lakh crore at listing.

LIC Q2 earnings increase 11x to ₹15,952 cr

LIC of India, the country’s largest insurance company, reported multiple growth in net profit to ₹15,952 crore for the second quarter ended September 30, 2022 (Q2 FY23), from ₹1,433 crore at the same period last year and ₹682.9 crore in the June quarter of the current financial year. The company attributed the sharp rise in profits to a change in accounting policy.

LIC, the highest ranked Indian company on the latest Fortune Global 500 list, reported net premium income of ₹1.32 lakh crore in the second quarter of FY23, up 27% from 1.04 ₹ lakh crore during the corresponding period last year. On a quarterly basis (QoQ), premium income increased by 34% from ₹98,352 crore in the April to June quarter of 2022.

In the quarter under review, the first year bonus, an indication of business growth, increased by 11% to ₹9,124.7 crore from ₹8,198.30 crore a year ago. The renewal premium increased by 2% to ₹56,156 crore, while the one-time premium increased by 62% to ₹66,901 crore.

On the asset quality front, the major insurance company’s gross non-performing assets (NPA) for the September quarter declined slightly to ₹26,111 crore from ₹26,619 crore a quarter ago and 28 ₹929 crore a year ago. Gross NPA ratio improved to 5.60% from 5.84% in Q1 FY23 and 6.57% in Q2 FY23.

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