Life Insurance earns Rs 2.58 crore in Q4; Huge Actuary valuation income pending

ShareSansar, August 17:

According to the unaudited report for the fourth quarter just published by LICN today, its net profit stands at Rs 2.58 crore as compared to Rs 27.73 crore in corresponding quarter. Note that the current year net profit excludes the profit that the LICN’s will earn after actuary valuation of life Insurance fund.

But the figure of the corresponding quarter is an audited one, and going by the profit posted by LICN for the past three quarter as well as the company’s life insurance fund which has drastically increased by the fourth quarter, the audited profit figure for the fourth quarter will be much higher – higher than the previous fiscal year’s net profit.

LICN’s earned Rs 28.28 crore in the audited 70/71 FY from the actuary valuation of Life Insurance Fund which is expected much higher in 71/72 FY.

The most encouraging aspect of LICN’s financial report for the fourth quarter is that its life fund has reached Rs 20.48 arba over the year, up from Rs 15.68 arba at the end of the previous fiscal year.

It shows that its core business and the number of policies as well as profit from other business activities have increased tremendously.

The number of policies has drastically increased to 5.18 lakh units, up from just 3.21 lakh units.

LICN’s EPS is Rs 3.02 (income from actuary valuation of Life Insurance Fund is Excluded), P/E ratio stands at 926.82 times and net worth per share at Rs 118.76.

The company paid up capital as of last FY stands Rs 85.55 crores. It has provided 30 percent bonus shares to its shareholders from the profit it earned in 2070/71 FY.