State-owned insurer Life Insurance Corporation (LIC) on Friday reported a 50% fall in net profit at ₹7,925 crore for the quarter ended September 30, on lower income.
The country’s biggest insurer had a net profit of ₹15,952 crore in the year-ago period, LIC said in a regulatory filing.
The net premium income eased to ₹1,07,397 crore in the second quarter of the current fiscal, from ₹1,32,631.72 crore in the same period a year ago.
LIC’s total income declined to ₹2,01,587 crore in the latest quarter, compared with ₹2,22,215 crore in the year-ago period, it said.
However, net income from investments during the quarter rose to ₹93,942 crore, compared with ₹84,104 crore in the same period of 2022-23.
LIC’s solvency margin increased to 1.90% compared with 1.88% in the same quarter a year ago.
Gross non-performing assets ratio eased to 2.43%, from 5.60% in the same period a year ago.
LIC earned the highest-ever half-yearly profit after tax at ₹17,469 crore compared with ₹16,635 crore in the same period a year ago, the company emphasized, saying, therefore, the latest reported results are not comparable.
“During the first six months of this financial year, we have been able to implement strategies successfully to enhance the share of Non-Par products in our overall individual business, said LIC Chairman Siddhartha Mohanty.
“The current VNB (value of new business) margins are an indicator of our initiatives delivering the objective of maintaining profitability as we change direction,” Mr. Mohanty added.
The distribution mix is also more diversified with an increase in share of Bancassurance and Alternate Channels, he said, adding, LIC is talking to two more banks for the tie up.
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