Indian life insurance market leader Life Insurance Corporation of India (LIC) closed Q2FY23 ending September 30 with a net profit of Rs 15,952.49 crore.
According to LIC, for the period under review (July to September), the company earned a net premium of Rs 132,104.13 crore, as compared to the corresponding period the previous year, which stoot at 104,331.53 crore, and a net profit of Rs 15,952.49 crore, as compared to Rs 1,433.71 crore in the year-ago period.
According to LIC, the net profit increased by Rs 14,271.80 crore owing to change in accounting policy.
As per the new policy, the amount pertaining to the accretion on the available solvency margin from non-participating policies to shareholder's account. As a result, the net profit for Q2FY23 went up to that extent.
The said amount comprises Rs 5,580.71 crore (net of tax) for quarter ended September 30, 2022, Rs 4,148.77 crore (net of tax) for quarter ended June 6, 2022, and Rs 4,542.30 crore (net of tax) for quarter ended March 31, 2022, LIC said.
The net income from investments for Q2 stood at Rs 84,103.64 crore, as compared to Rs 76,533.75 crore in the year-ago period.
LIC had provided Rs 5,132.6 crore towards doubtful debts and bad debts written off up from Rs.117 crore during Q2 FY22.
During Q2 FY2023, there was an estimated additional provision of Rs 11,54,3.75 crore for employee retirement benefits due to wage revision, which was due from August 1, 2022.
The life insurer settled claims to the tune of Rs 84,269.04. crore during Q2FY23 as against Rs 85,451.59 crore paid during the corresponding period the previous year.