LIC net surges to Rs 234 cr in Q3FY22 due to change in surplus distribution

Ahead of its initial public offering (IPO), Life Insurance Corporation’s (LIC) net profit surged to Rs 234.91 crore in September – December quarter (Q3FY22), owing to the change in surplus distribution model, wherein shareholders will now get a larger share of the surplus than earlier. In the same period last financial year, LIC’s net profit totaled Rs 0.91 crore. For the 9 months ended FY22 (April – December), net profit of the insurer stood at Rs 1,642.78 crore.

LIC had a single “life fund” before Section 24 of the LIC Act was amended by the government to bring its surplus