LIC Profits Dip Amid Premium Income Rise

LIC, India's leading insurer, reported a 3.8% drop in Q2 net profit to Rs 7,621 crore due to lower other income. Despite this, total income and market share rose, demonstrating resilience amidst financial fluctuations.

State-owned insurer LIC has announced a 3.8 percent drop in net profit, recording Rs 7,621 crore for the quarter ending September 30, primarily due to decreased other income. This decline was contrasted with a higher net profit of Rs 7,925 crore in the same period last year, according to LIC's regulatory filing.

The insurer's net premium income recorded a slight dip to Rs 1,19,901 crore in the second quarter of this fiscal year, down from last year's Rs 1,07,397 crore. Additionally, other income was nearly halved to Rs 145 crore compared to Rs 248 crore from a year prior. Nonetheless, the overall total income for the quarter rose significantly to Rs 2,29,620 crore from Rs 2,01,587 crore year-over-year.

LIC's total expenses for the quarter increased to Rs 2,22,366 crore, compared with Rs 1,94,335 crore in the same timeframe the previous year. The insurer's solvency ratio showed improvement, increasing to 198 percent, while gross NPAs decreased to 1.72 percent from 2.43 percent. For the first half of the year, LIC registered a profit growth of 3.5 percent, maintaining its dominance in India's life insurance market with an impressive 61.07 percent market share.

(With inputs from agencies.)