New Delhi: State-owned insurer LIC Friday reported a 50 per cent fall in net profit at Rs 7,925 crore for the quarter ended September 30, on lower income.
The country’s biggest insurer had a net profit of Rs 15,952 crore in the year-ago period, LIC said in a regulatory filing.
The net premium income eased to Rs 1,07,397 crore in the second quarter of the current fiscal, from Rs 1,32,631.72 crore in the same period a year ago.
However, the first-year premium for the reporting quarter increased to Rs 9,988 crore, as against Rs 9,125 crore in the year-ago period, it said.
LIC’s total income declined to Rs 2,01,587 crore in the latest September quarter, compared to Rs 2,22,215 crore in the year-ago period, it said.
Net income from investments during the quarter rose to Rs 93,942 crore in the second quarter of this fiscal, as compared to Rs 84,104 crore in the same period of 2022-23.
The solvency margin of LIC increased to 1.90 per cent in the September quarter this year, as compared to 1.88 per cent in the same quarter a year ago.
On the asset quality front, gross non-performing assets ratio eased to 2.43 per cent, from 5.60 per cent in the same period a year ago.
During the six months ended September, LIC earned the highest-ever half-yearly profit after tax at Rs 17,469 crore, as compared to Rs 16,635 crore in the same period a year ago.
New business premium income during the first half increased marginally to Rs 25,184 crore, as against Rs 24,535 crore in the same period of the previous fiscal.
Total premium too rose marginally to Rs 1,34,783 crore, compared to Rs 1,27,738 crore in the year-ago period.
“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.
“The current VNB (value of new business) margins are an indicator of our initiatives delivering the objective of maintaining profitability as we change direction,” LIC Chairman Siddhartha Mohanty said.
LIC is conscious of the market dynamics in certain parts of business and are working towards profit-oriented consolidation, he said.
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.
There has been directional change in terms of initiatives taken by LIC recently, he added.
PTI
