On February 19, 2024, the stock of Life Insurance Corporation of India (LIC) rose by 2% on the National Stock Exchange following a refund of Rs 21,740.77 crore from the Income Tax Department received by the insurance firm on February 15, 2024. This refund pertains to assessment years 2012-13, 2013-14, 2014-15, 2016-17, 2017-18, 2018-19, and 2019-20. Although the total refund amount was Rs 25,464.46 crore, only Rs 21,740.77 crore was released by the Income Tax department in February, with the corporation continuing to pursue the balance.
As of 1:30 pm on February 19, LIC’s stock was trading at Rs 1,056.55 on the National Stock Exchange, marking a 1.61% increase from the previous close. Over the past month, the stock has seen a notable surge of 17%.
In addition to the financial developments, LIC introduced a new product named Amritbaal on February 17. Amritbaal is described as a non-linked, non-participating, individual, and savings life insurance plan specifically designed for parents aiming to secure higher education for their children over the long term.
LIC Amritbaal, as per LIC’s press release, is tailored to provide an ample corpus to fulfill the higher education and other requirements of a child. The plan accommodates a minimum entry age of 30 days and a maximum age of 13 years, ensuring flexibility and accessibility for interested individuals seeking to secure their children’s future educational needs.
According to LIC’s statement, the Amritbaal plan is structured to generate a sufficient corpus to fulfill the higher education and other needs of the child. It achieves this through guaranteed additions at the rate of Rs 80 per thousand of the basic sum assured at the end of each policy year, starting from the policy’s inception until the end of the policy term, provided the policy remains in force.
Regarding financial performance, in the third quarter of fiscal year 2023-24, LIC reported a standalone net profit of Rs 9,444 crore for the quarter ending December 2023. This represented a significant increase of 49% from the net profit of Rs 6,334 crore recorded in the same quarter of the previous year.
Furthermore, LIC’s net premium income for the third quarter of FY24 experienced a year-on-year growth of 5%, reaching Rs 1.17 lakh crore compared to Rs 1.11 lakh crore reported in the corresponding quarter of the previous fiscal year. This indicates a positive trajectory in the company’s financial performance during the specified period.