Calcutta: LIC on Friday reported a net profit of Rs 7,925.01 crore in the second quarter against Rs 15,952.49 crore a year ago.
Net premium income during the quarter stood at Rs 1.07 lakh crore compared with Rs 1.32 lakh crore in the corresponding period of the previous year.
Net profit for the six months ended September was Rs 17,469 crore compared with Rs 16,635 crore a year ago.
The life insurer said a like-to-like comparison is not possible due to a change in accounting policy in September 2022 on account of the transfer of amount from the non-participating policyholder’s account to the shareholder’s account.
LIC said Rs 13,768 crore (net of tax) has been transferred for the six months ended 30.9.2023 which includes Rs 6,277 crore for the quarter ended June and Rs 7,491 crore for the quarter ended September.
An amount of Rs 14,272 crore was transferred to the shareholder’s account for quarters ended 31.3.2022, 30.6.2022 and 30.9.2022.
Total premium income was down 10.72 per cent to Rs 2.05 lakh crore in the first half compared with Rs 2.30 lakh crore a year ago. This was largely on account of a dip in premium income from the group business.
There was a fall in the number of policies sold of 3.57 per cent for the six months till September. Solvency margin improved to 1.99 per cent from 1.88 per cent.
“We are conscious of the market dynamics in certain parts of our business and are working towards profit-oriented consolidation. The distribution mix is also more diversified with an increase in the share of bancassurance and alternate channels,” said Siddhartha Mohanty, chairperson, LIC.
