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The corporate disclosure of India’s largest insurance company – LIC India reveals the life insurer retain 5 out to 10 policies sold even after 5 years.
In terms of policies sold, the 61st month persistency ratio of the company was 49.86% in FY 2023. Further, the company has healthy 13th month persistency ratio at 64.28% in FY 2023 i.e. the company is able to retain 64% of the total policies sold in the preceding financial year.
In terms of premium, the insurer has a healthy persistency ratio of 77% and 62%.
PAT
The company saw massive increase in its profit after taxation. Its PAT increased from Rs. 4000 crore in FY 2022 to Rs. 36,400 crore in FY 2023. However, over Rs.27000 crore has come from accretion of available solvency margin transferred to shareholders account.
Overall, the insurer collected premium Rs. 2.93 lakh crore in FY 2023 of which Rs.2.34 lakh crore has come from renewal of existing policies.
The insurer has sold over 2.04 crore insurance policies in FY 2023.
AUM
The AUM of LIC reached close to Rs.44 lakh crore in FY 2023 from Rs.41 lakh crore in FY 2022, a growth of 8%.