50% decrease in LIC’s Q2 earnings at Rs 7,925 crore

Due to decreased revenue, state-owned insurer LIC announced on Friday a 50% decline in net profit, amounting to Rs 7,925 crore for the quarter that concluded on September 30.

The largest insurer in the nation, LIC, reported a net profit of Rs 15,952 crore for the same time last year in a regulatory filing.

In the second quarter of the current fiscal year, net premium income decreased to Rs 1,07,397 crore from Rs 1,32,631.72 crore during the same time last year.

Nonetheless, it said that the first-year premium for the reporting quarter rose to Rs 9,988 crore from Rs 9,125 crore during the same time last year.

According to the company, LIC’s overall revenue decreased to Rs 2,01,587 crore in the most recent September quarter from Rs 2,22,215 crore in the same time last year.

In the second quarter of current fiscal year, net income from investments increased to Rs 93,942 crore from Rs 84,104 crore during the same period in 2022–2023.

In comparison to 1.88 percent in the same quarter last year, LIC’s solvency margin climbed to 1.90 percent in the September quarter of this year.

Regarding asset quality, the gross non-performing assets ratio decreased from 5.60 percent during the same quarter last year to 2.43 percent.

In comparison to the same time last year, when LIC made Rs 16,635 crore, the company’s half-yearly profit after tax for the six months that concluded in September was the highest it has ever been at Rs 17,469 crore.

Compared to the same time in the previous fiscal year, when new business premium income was Rs 24,535 crore, it grew slightly to Rs 25,184 crore in the first half of this year.

Additionally, the total premium increased slightly to Rs 1,34,783 crore from Rs 1,27,738 crore during the same time last year.

“We have been able to successfully implement strategies to increase the share of Non-Par products in our overall individual business during the first half of this fiscal year.”

According to 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.”

LIC is striving for profit-oriented consolidation and is aware of the market dynamics in certain business segments, he added.

He said that LIC is in talks to form partnerships with two additional banks. The distribution mix is also more diverse, with a greater proportion of Bancassurance and Alternate Channels.

He further said that LIC has lately changed the course of its activities.