In a significant development, the Life Insurance Corporation of India (LIC) has announced the receipt of refund orders totaling ₹21,740.77 crore from the Income Tax Department. This substantial tax refund comes as a boost to LIC, further strengthening its financial position and operational capabilities. However, a portion of the refund amount, totaling ₹3,700 crore, is still awaited, highlighting the ongoing efforts by LIC to complete the refund process.
Refund
LIC confirmed that the refund orders cover Assessment Years spanning from 2012-13 to 2019-20, underscoring the comprehensive nature of the refund received. The Income Tax Department released the substantial refund amount of ₹21,740.77 crore on 15th February 2024.
showcasing the timely disbursement of funds. Despite this significant inflow, LIC continues to engage with the Income Tax Department to secure the remaining refund amount of ₹3,700 crore, demonstrating its commitment to financial prudence and accountability.
Financial Performance
Meanwhile, LIC reported remarkable gains during the December quarter, marked by strategic divestments and robust financial results. The insurer capitalized on the bullish market sentiment by selling shares worth a staggering $4.7 billion in listed domestic companies.
Leveraging the record-high valuations. This divestment initiative contributed to LIC’s impressive financial performance, reflected in its year-on-year net profit growth of 49% during the December quarter of FY2024.
Highlights
LIC’s stellar financial performance can be attributed to various operational factors, including an increase in net income from investments and sustained growth in net premium income. The insurer witnessed a notable rise in net premium income, reaching ₹1.17 trillion, underscoring its resilience and market dominance. Additionally, LIC’s net income from investments surged by 12% year-on-year, further bolstering its financial stability and profitability.
Announcement
Recognizing its robust financial performance, LIC’s board proposed an interim dividend of ₹4 per share for FY2024. This dividend announcement reflects the company’s commitment to maximizing shareholder value and rewarding investors. With the record date set for 21st February 2024, shareholders can anticipate favorable returns on their investments, further enhancing LIC’s reputation as a lucrative investment option.
Decision
As LIC continues to navigate the dynamic landscape of the insurance sector, its recent tax refund and stellar financial performance underscore its resilience and strategic acumen. With a steadfast focus on customer-centricity and financial prudence, LIC remains a cornerstone of India’s financial ecosystem, poised for sustained growth and success in the years to come.
