LIC rise in net profit to Rs 9,544 crore

MUMBAI: Life Insurance Corporation of India (LIC), country’s largest insurer, on Thursday reported manifold rise in net profit to Rs 9,544 crore, driven by transfer of Rs 7,491.5 crore of surplus from non-participatory funds to shareholders’ account and a healthy rise in income on investments.

It had posted a standalone profit of Rs 682.88 crore in the corresponding quarter last year. The insurer’s income from investments grew 30% to Rs 90,309 crore in the April-June quarter from Rs 69,571 crore same quarter previous fiscal.

LIC’s solvency margin, which indicates its financial strength, improved slightly to 1.89%, up from 1.88% in the same quarter last year. On the asset quality front, gross non-performing assets ratio eased to 2.48% from 5.84% in the same period a year ago 

“During the first quarter of this financial year, we have achieved increase in our non-par product mix as a percentage of the overall individual business. Further, our efforts to improve persistency across cohorts are beginning to show results. Our overall expense ratio has become better and our margins are stable on year-on-year basis,” said Siddhartha Mohanty, Chairperson, LIC. 

“Simultaneously we continue to work on strategies for diversifying the channel mix. We believe we are on track to grow our business in a manner which creates superior value for all our stakeholders,” he added. Total income rose to Rs 1,88,749 crore for the quarter as against Rs 1,68,881 crore in the year-ago period
In terms of market share measured by First Year Premium Income,  LIC has maintained its leadership in Indian life insurance business with a market share of 61.42% for the quarter ended June 30