LIC Pays ₹3,662 Crore Dividend to Indian Government [Current Affairs]

On Thursday, Life Insurance Corporation of India (LIC) presented a dividend cheque of ₹3,662.17 crore to Union Finance and Corporate Affairs Minister Nirmala Sitharaman. This follows the shareholder approval of a final dividend of ₹6 per share for 2023-24, up from ₹3 per share in the previous fiscal year. Earlier in March 2024, LIC had paid an interim dividend of ₹2,441.45 crore, bringing the total dividend payout to the government for the year 2023-24 to ₹6,103.62 crore.

Government Stake and Financial Highlights

The Indian government, which holds a 96.5 percent majority stake in LIC, received this dividend payment as part of LIC’s annual returns. As of March 31, 2024, LIC’s asset base stands at over ₹52.85 lakh crore. The corporation remains the market leader in the Indian life insurance sector with a 64.02 percent market share in terms of First Year Premium Income, according to IRDAI estimates.

Recent Financial Performance

For the April-June quarter of FY 2024-25, LIC reported a 9 percent increase in consolidated net profit, rising to ₹10,544 crore from ₹9,635 crore in the same period last year. Net premium income surged by 16 percent to ₹1.14 lakh crore, compared to ₹98,755 crore in Q1 FY 2023-24. Key growth metrics include a 13.67 percent increase in New Business Premium Income (Individual) to ₹11,892 crore and a 21.28 percent rise in Overall Annual Premium Equivalent (APE) to ₹11,560 crore. Individual Business Non-Par APE saw a significant increase of 166 percent, reaching ₹1,615 crore, while Group Business APE rose by 34 percent to ₹4,813 crore. The Value of New Business grew by 24 percent to ₹1,610 crore, with a net margin increase of 20 basis points to 14 percent.

LIC : Key points

Full Name: Life Insurance Corporation of India

Established: 1956

Ownership: Government of India (96.5% stake)

Asset Base: Over ₹52.85 lakh crore as of March 31, 2024

Market Share: 64.02% in First Year Premium Income (as per IRDAI estimates)

Net Profit (Q1 FY 2024-25): ₹10,544 crore

Dividend Payment (2023-24): Total ₹6,103.62 crore (including ₹2,441.45 crore interim and ₹3,662.17 crore final)

Financial Performance: 13.67% increase in New Business Premium Income (Individual) to ₹11,892 crore in Q1 FY 2024-25