LIC dividend: Here's how much the state-run insurer will pay the Centre, its largest shareholder

Life Insurance Corporation of India (LIC), the state-run insurance sector behemoth, will pay the Centre, its largest shareholder, ₹3,662 crore in the form of dividend.

The amount was calculated by analysts after LIC, while posting its financial results for the quarter ended March 2024, declared a final dividend of ₹6 per share for FY24.

As a result, the central government, which holds 96.5% stake or 6,10,36,22,781 shares in LIC, will be eligible to receive ₹3,662 crore in the form of dividend payout.

"The Board of Directors recommended a final dividend of ₹6 per share for the financial year 2023-24 subject to approval of shareholders," LIC said in a media release, issued after it posted the quarterly results.

The record date for determining the shareholders eligible for the dividend payout was fixed as July 19.

Earlier in FY24, an interim dividend of ₹4 was declared and paid to shareholders. Therefore the total of interim and recommended final dividend aggregates to ₹10 per share, it pointed out.

LIC Q4 results

The insurer posted a net profit of ₹13,782 crore in Q4FY24, which was up 4.5% as against ₹13,191 crore in Q4FY23. The asset quality improved year-on-year, as the gross non-performing assets (GNPA) ratio came down to 2.01% from 2.56% a year ago.

On an Annualized Premium Equivalent (APE) basis, the total premium was ₹56,970 crore for the year ended March 31, 2024. Of this 67.46% (₹38,433 crore) was accounted for by the 'individual business' and 32.54% (₹18,537 crore) by the 'group business', LIC said.

The total number of policies sold in FY24 stood at 2.03 crore, marginally lower as compared to 2.04 crore policies sold in FY23.

The assets under management increased 16.5% year-on-year to ₹51.2 lakh crore as on March 31, 2024 as compared to ₹43.9 lakh crore on March 31, 2023.

The results were posted by LIC post the market closing hours on Monday. The shares had settled 0.6% higher at ₹1,036 apiece on the NSE.