NEW DELHI: Life Insurance Corporation of India (LIC), the country’s largest insurance company, on Friday reported a 50% fall in net profit to Rs 7,925 crore for the quarter ended September (Q2FY24). The company had a net profit of Rs 15,952 crore in the year-ago period (Q2FY23). The state-run insurer, in a statement, said it had changed its accounting policy in September 2022 regarding transfer of amount (net of tax) due to which year-on-year profit figures can’t be compared.
LIC reported that profit after tax (PAT) for the half year ended September 30, 2023,was Rs 17,469 crore. The current period profit includes an amount of Rs 13,768 crore (net of tax), pertaining to the accretions on the available solvency margin, transferred from Non - Par fund to shareholders account.
The PAT for similar six month period ended September 30,2022 was Rs 16,635 crore is not comparable since it included an amount of Rs 4,542 crore (net of tax) pertaining to the accretions on the Available Solvency Margin for the last quarter of FY2021-22, which was transferred from non-par fund to shareholders account on September 30th 2022.
LIC’s total income fell to Rs 201,587 crore in the September quarter of this fiscal as against Rs 222,215 crore in the year-ago period. Net premium income in Q2FY24 came down to Rs 107,397 crore in Q2FY24 from Rs 132,632 crore in Q2FY23. The value of new business (VNB) on a net basis was at Rs 2,005 crore during the reporting quarter as against Rs 2,280 crore in the September quarter of last fiscal. Net VNB margin in Q2FY24 stood at 15.3%, as against 15.2% in Q2 FY23 and 13.7% in Q1 FY24.
Siddhartha Mohanty, Chairperson, LIC said, “The current VNB margins are an indicator of our initiatives delivering the objective of maintaining profitability as we change direction. 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 increase in share of Bancassurance and Alternate Channels.” LIC’s net income from investments in Q2FY24 rose to Rs 93,942 crore in the second quarter of this fiscal, as compared to Rs 84,104 crore in the same period of FY23.
