India’s June quarter LIC premium income jumps as policy sales rebound

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A security guard walks past the logos of Life Insurance Corporation of India (LIC) and Bombay Stock Exchange (BSE) inside the BSE building in Mumbai, India, May 17, 2022. REUTERS/Niharika Kulkarni

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BENGALURU, Aug 12 (Reuters) – Life Insurance Corporation of India (LIC) (LIFI.NS) reported a 20.4% rise in premium income in the June quarter on Friday as COVID-19 restrictions eased. 19 having boosted policy sales for the insurer which largely depends on its agents.

The company, which operates primarily through an army of 1.3 million sales agents, was hit last year by pandemic-induced lockdowns that disrupted the work of its agents who focus on in-person engagement.

“As the COVID situation normalizes, we are seeing more activity on the ground, thus moving closer to our model of having ‘feet in the street’,” Chairman MR Kumar said.

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LIC, India’s largest insurer, said net premium income rose to 983.52 billion rupees ($12.34 billion) from 817.21 billion rupees a year earlier, with an increase of nearly 60% of the number of policies sold.

The company’s Gross New Business (GNB) value, which measures the expected profit from new premiums and is a key indicator of future growth, stood at Rs 18.61 billion, while VNB margins improved. raised to 13.6%.

We don’t see much market volatility going forward that could impact earnings, Kumar told a press briefing, adding that the insurer expects a VNB margin of over 15% by the end of the day. end of the year.

The company, synonymous with buying protection policies in India, went public in May following a record $2.7 billion initial public offering. It has a market share of over 60% in terms of overall premiums.

LIC’s profit for the three months ended June 30 was 6.83 billion rupees, compared to 29.4 million rupees in the COVID-hit quarter a year ago, the company said in a statement. regulatory filing.

Shares of LIC have fallen about 22% since listing in May, against a 23% increase in the number. 2 competitors SBI Life Insurance (SBIL.NS) over the same period.

($1 = 79.6830 Indian rupees)

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Reporting by Chris Thomas in Bengaluru and Nupur Anand in Mumbai; Editing by Shinjini Ganguli

Our standards: The Thomson Reuters Trust Principles.

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