Star Union Dai-ichi Life Annual Reports, Balance Sheet and Financials

Star Union Daiichi LIC Balance Sheet (Rs in Thousands)

 Star Union Daiichi LIC Profit & Loss Statement (Rs in Thousands)

 Star Union Daiichi LIC Consolidated Cash Flow Statement (Rs in Thousands)

Here is a summary of the Cash Flow Statement for the years 2024 and 2023:

Cash Flows from Operating Activities:

In 2024, the company generated significant cash inflows from its core operations. Premiums received from policyholders amounted to ₹6,82,56,586 thousand, up from ₹5,93,08,290 thousand in 2023, reflecting growth in the insurance business. However, these inflows were offset by substantial outflows, including claims/benefit payments (₹2,02,28,445 thousand) and operating expenses (₹92,06,570 thousand). After accounting for re-insurers' payments and taxes, the net cash flow from operating activities was a healthy ₹3,30,45,850 thousand in 2024, showing a strong operating performance compared to ₹3,00,12,578 thousand in 2023.

Cash Flows from Investing Activities:

The investing activities resulted in significant cash outflows, driven primarily by large investments in securities (₹23,62,00,513 thousand) in 2024, an increase from ₹15,12,72,496 thousand in 2023. However, the company partially offset this by realizing ₹19,02,70,499 thousand from sales of investments. Interest, rent, and dividend income provided positive inflows (₹1,23,65,801 thousand). Despite these, there was a net cash outflow of ₹3,36,32,416 thousand from investing activities, slightly higher than the previous year’s outflow of ₹2,89,99,439 thousand. This suggests that the company is actively expanding its investment portfolio, potentially to support future growth.

Cash Flows from Financing Activities:

Financing activities in 2024 show a relatively minor role in the cash flow dynamics, with a net outflow of ₹1,57,889 thousand. This was largely due to the payment of interest and dividends. Notably, there were no proceeds from the issuance of share capital in 2024, while in 2023, the company had raised ₹20,00,000 thousand from share issuance, explaining the positive inflow in that year (₹18,90,177 thousand).

Net Increase/Decrease in Cash and Cash Equivalents:

Due to the significant outflows from investing activities, the company saw a net decrease in cash and cash equivalents of ₹7,44,455 thousand in 2024, compared to an increase of ₹29,03,316 thousand in 2023. Despite this, the company maintained substantial cash reserves, with cash and cash equivalents at the end of 2024 totaling ₹1,14,89,854 thousand, reflecting a strong liquidity position, albeit slightly lower than the previous year.

Financial Ratios of Star Union Daiichi LIC

Here is a summary of the financial and operational metrics for Star Union Daiichi LIC for the year 2024 and 2023:

Current Ratio (2024: 2.76, 2023: 2.5)

The current ratio measures a company's ability to pay its short-term liabilities (debts due within one year) with its short-term assets (such as cash, inventory, and receivables). It is calculated by dividing current assets by current liabilities. A current ratio of 2.76 in 2024 indicates that the company has ₹2.76 in current assets for every ₹1 of current liabilities, which is a healthy sign of liquidity

Debt-Equity Ratio (2024: 0.1, 2023: 0.12)

The debt-equity ratio is used to measure a company’s financial leverage by comparing its total liabilities to shareholders' equity. A ratio of 0.1 in 2024 means the company has only 10% debt relative to its equity, which indicates a low level of financial risk and dependency on external borrowing.

Debt Service Coverage Ratio (2024: 21.65, 2023: 16.35)

The debt service coverage ratio (DSCR) assesses a company's ability to service its debt by comparing its operating income to its debt obligations, including interest and principal payments. A DSCR of 21.65 in 2024 suggests that the company generates more than enough income—about 21.65 times its debt service requirements.

Solvency Ratio (2024: 2.03, 2023: 2.2)

The solvency ratio assesses a company's ability to meet its long-term obligations and sustain its operations. It is calculated by dividing net income and depreciation by total liabilities. A ratio of 2.03 in 2024 means that the company has ₹2.03 of net income and depreciation for every ₹1 of total liabilities, indicating a solid financial position.

Gross NPA Ratio (2024: 0.21%, 2023: 0.29%)

The Gross Non-Performing Assets (NPA) ratio measures the percentage of loans that are classified as non-performing (defaulted or close to default) in relation to the total advances of the company, typically in the banking and financial sectors.