Life Insurance Corporation of India (LIC) Receives Rs 25,464 Crore Income Tax Refund

Life Insurance Corporation of India (LIC) announced that it has received a substantial income tax refund totaling Rs 25,464 crore. This refund pertains to interim bonuses distributed to policyholders during the past seven assessment years.

In compliance with the order issued by the Income Tax Appellate Tribunal (ITAT), the Income Tax Department has formally intimated LIC about the refund amount, as stated in a regulatory filing made by LIC on Thursday.

Financial Performance Highlights

For the first half of the financial year ending in September, LIC reported a net profit of Rs 17,469 crore. This marks an increase from Rs 16,635 crore reported during the corresponding period in the previous year.

Additionally, LIC’s new business premium income in the individual segment saw a growth of 2.65% during the first half of the current financial year. The income rose to Rs 25,184 crore compared to Rs 24,535 crore in the same period last year, according to the regulatory filing.

New business premium income refers to the premium due in the first policy year of a life insurance contract, indicating the company’s ability to attract new customers.

Market Leadership

Despite evolving market dynamics, LIC continues to maintain its dominance in the life insurance sector. According to the Insurance Regulatory and Development Authority of India (IRDAI), LIC holds an impressive overall market share of 58.50% in the first-year premium income category.

Breaking down the market share further, LIC commanded 40.35% in individual businesses and an even more significant share of 70.26% in group businesses during the six months ending September 30.

Conclusion

The substantial income tax refund received by LIC is a testament to its robust financial management and commitment to policyholders. With its continued market leadership and strong financial performance, LIC remains a cornerstone of the Indian insurance industry.