Life Insurance Corporation of India (LIC) jumped 2 per cent on February 19 afternoon on the National Stock Exchange after the insurance firm got a refund of Rs 21,740.77 crore from the Income Tax Department on February 15, 2024. The refund is for assessment years 2012-13, 2013-14, 2014-15, 2016-17, 2017-18, 2018-19 and 2019-20.
The total amount of refund was Rs 25,464.46 crore. However, the Income Tax department released Rs 21,740.77 crore in February. The corporation is pursuing a balance with the department.
At 1.30 pm, the stock was trading at Rs 1,056.55 on the National Stock Exchange, up 1.61 per cent from the previous close. In the past month, the stock has surged 17 per cent.
The insurer also launched a new product, Amritbaal, on February 17. It is a non-linked, non-participating, individual, and savings life insurance plan. It is aimed at parents who are looking to build a higher education for their children over the long term.
According to LIC’s press release, “LIC Amritbaal is specifically designed to have an adequate corpus to meet the higher education and other needs of the child. The minimum entry age is 30 days age, and the maximum age is 13 years.
“The plan is specifically designed to have an adequate corpus to meet the higher education and other needs of the child. It facilitates an accumulation of corpus through guaranteed additions at the rate of Rs 80 per thousand basic-sum assured at the end of each policy year from the inception till the end of the policy term, provided the policy is in force,” the life insurance behemoth said.
In Q3 FY24, LIC reported a standalone net profit of Rs 9,444 crore for the quarter ended December 2023. The profit was up 49 per cent from Rs 6,334 crore posted in the last year quarter.
The net premium income for the third quarter rose 5 per cent year-on-year to Rs 1.17 lakh crore, compared with Rs 1.11 lakh crore in the corresponding quarter of the previous year.
For the nine months ended December 2023, LIC reported a net profit of Rs 26,913 crore, up from Rs 22,969 crore in the corresponding nine months of the previous fiscal.
In terms of technicals, the relative strength index (RSI) of LIC stands at 62.8, signalling it’s neither trading in the overbought nor in the oversold territory. The stock has a beta of 0.6, indicating low volatility in a year. Shares of LIC are trading higher than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages.
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