Following the insurance company’s receipt of a refund of Rs 21,740.77 crore from the Income Tax Department on February 15, 2024, Life Insurance Corporation of India (LIC) saw a 2% increase on February 19 afternoon on the National Stock Exchange. The assessment years 2012–13, 2013–14, 2014–15, 2016–17, 2017–18, 2018–19, and 2019–20 are covered by the refund.
The reimbursement totaled Rs 25,464.46 crore. But in February, the Income Tax agency made available Rs 21,740.77 crore. The company and the department are trying to strike a balance.
The stock was up 1.61 percent from the previous close as of 1:30 pm on the National Stock Exchange, trading at Rs 1,056.55. The stock has increased 17% in the last month.
On February 17, the insurance company also introduced Amritbaal, a new product. It’s a savings-oriented, individual, non-linked life insurance plan. It is intended for parents who want to provide their kids with a longer-term, higher education.
“LIC Amritbaal is specifically designed to have an adequate corpus to meet the higher education and other needs of the child,” reads a press release from LIC. Thirty days is the least age to enter, while thirteen years is the maximum age.
“The plan is especially created to have a sufficient corpus to satisfy the child’s needs for more schooling as well as other needs. As long as the policy is in effect, it allows for the accumulation of corpus through guaranteed additions at the rate of Rs. 80 per thousand basic-sum assured at the conclusion of each policy year from the start of the policy to the end of the policy term,” the massive life insurance company stated.
For the quarter that concluded in December 2023, LIC had a standalone net profit of Rs 9,444 crore in Q3 FY24. Compared to the Rs 6,334 crore reported in the same quarter previous year, the profit increased by 49%.
In comparison to the same quarter last year, when it was Rs 1.11 lakh crore, the net premium income for the third quarter increased by 5% year over year to Rs 1.17 lakh crore.
LIC declared a net profit of Rs 26,913 crore for the nine months ending December 2023, an increase from Rs 22,969 crore in the equivalent nine months of the previous fiscal year.
Technically speaking, LIC’s relative strength indicator (RSI) is 62.8, indicating that it is neither trading in either the overbought nor the oversold areas. As the stock has a beta of 0.6, it is indicative of minimal annual volatility. In comparison to the 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, LIC shares are now trading higher.
