Life Insurance Corporation on Wednesday said it has earned a net profit of Rs 36,397.38 crore in 2022-23 compared with Rs 4,043.12 crore in 2021-22, with the bottom line driven by the transfer from non-par to shareholder’s account as part of a change in the accounting policy of the company. Net profit during the quarter that ended March 31, 2023, was Rs 13,427.81 crore compared with Rs 2,371.55 crore in the corresponding quarter previous year, almost a fivefold jump due to the transfer of funds.

Non-participating policies (non-par) are those where the policyholder does not participate in the profits of the life insurance company. “The corporation has changed its accounting policy during the current year and accordingly has transferred an amount of Rs.27,24,075.30 lakh (net of tax) about the accretion on the available solvency margin from non-par to shareholder’s account due to which the profit for the financial year ended as on March 31 has increased to that extent,” LIC said in a statement to the stock exchange.

“The said amount comprises Rs 7,29,915.46 lakh (net of tax) of the quarter ended March 31, 2023, Rs 15,39,928.96 lakh (net of tax) up to 9 months ended December 31 and Rs 4,54,230.88 lakh (net of tax) of the quarter ended March 31, 2022,” the statement said. LIC’s solvency ratio has improved to 1.87 as of March 31, 2023, from 1.85 as on March 31, 2022. The expenses of management ratio for the year have increased to 15.53 per cent during the year from 14.50 per cent the previous fiscal.

LIC also said that during the year ended March 31, 2023, an estimated additional provision of Rs 11,543.75 crore has been made for employee retirement benefits due to wage revision which became due from August 1. Operationally however, LIC’s performance remained under pressure during the quarter with net premium income at Rs 1,31,761.10 crore during the fourth quarter of 2022-23 compared with Rs 1,43,745.91 crore a year ago, down 8.33 per cent on a year-on-year basis.

Net premium income for the entire financial year 2022- 23 was Rs 4,74,004.61 crore compared with Rs 4,27,419.21 crore in 2021-22, a growth of 10.89 per cent. “The board of directors, in its meeting held on May 24, have proposed a dividend of Rs 3.00 per equity share (face value Rs. 10 each) for 2022-23, which is subject to the approval of shareholders in the ensuing annual general meeting,” LIC said.