LIC Reports Net Profit of ₹7,621 Crore for July-September Quarter

LIFE INSURANCE CORPORATION Friday posted a standalone net profit of Rs 7,621 crore for the July-September quarter (Q2) of the current financial year, 4% lower than the corresponding figure of Rs 7,925 crore for the same quarter last year, as per a regulatory filing done by the company.

For the quarter under review, net premium income increased by 11 percent to Rs 1.19 lakh crore against Rs 1.07 lakh crore for the same period in the previous year.

Second quarter investment income grew by 16 per cent to Rs 1.08 lakh crore compared to Rs 93,942 crore for the same period last year.

Thus, first-quarter premium income had risen 12% year-over-year to Rs 11,201 crore, from Rs 9,988 crore a year ago.

New individual business premium income during the six months ended September 2024 was Rs 29,538 crore, surging by 17 per cent over the corresponding period of the previous year. Individual renewal premium income for the first half grew 5 percent to Rs 1.15 lakh crore.

In the individual segment, 91.70 lakh policies have been sold in H1FY25. Total premium is Rs 28,025 crore on an APE basis. Of this, individual business accounted for 65 percent or Rs 18,163 crore, while group business accounted for nearly 35 percent at Rs 9,862 crore. Six-month New Business Value (VNB) rose 38 per cent to Rs 4,551 crore while the net VNB margin increased 160 bps to 16.2 per cent during the period under review compared to the same period last year.

For the solvency ratio, there has been an increase to 1.98 as of September 2024, while the 13th-month and 61st-month persistency ratios stand at 77.62 per cent and 61.46 per cent, respectively. The AUMs of LIC rose 17 per cent to Rs 55.39 lakh crore as of September 2024 from the same period last year. The overall expense ratio for the first half has been increased by 2.4 percent to 12.74 percent.

LIC further said in regulatory filing, "pursuant to the approval received by the Corporation, an amount of Rs. 5,477.10 crore towards additional pension liability pertaining to Par segment is being charged to the Shareholders account over a period not exceeding three years commencing from the FY 2024-2025. Accordingly, an amount of Rs. 456.42 crore has been charged to Shareholders' account during the quarter ended September 30, 2024. The balance amount of Rs. 4,564.26 crore shall be charged to Shareholders' account over the subsequent quarters upto 04 of the FY 2026-27".

Licied closed 1.5 per cent on the NSE, at Rs 915.55, on Friday, before results declaration.