MUMBAI: The national insurer Life Insurance Corporation (LIC) has reported a 3.75 percent decline in its consolidated net profit at Rs 7,729 crore for the September quarter due to higher claim payouts.
The insurance behemoth had earned Rs 8,030.28 crore in the year-ago period, the management led by chief executive SK Mohanty told reporters here Friday evening.
The bottomline was impacted by an improvement in gross non-performing assets, which printed in at 1.72 percent during the quarter against 1.95 percent on-quarter and from 2.43 percent in the same period a year ago.
The net premium income came in at Rs 1.2 trillion, up 11.5 percent on-year from Rs 1.07 trillion but down from Rs 1.14 trillion in the June 2024 quarter, Mohanty said.
The solvency ratio was reported at 1.98 for the quarter this fiscal from 1.90 in the year-ago period.
Shares of the company traded under pressure in Friday's trade. The counter settled in the red at Rs 915.55 per share on the NSE, down 1.52 percent.
Another reason for the decline in profit was the halving of other income to Rs 145 crore from Rs 248 crore in the same quarter in the previous year. However, total income rose to Rs 2,29,620 crore in the latest September quarter, compared to Rs 2,01,587 crore in the year-ago period.
Total expenses rose to Rs 2,22,366 crore in the quarter as against Rs 1,94,335 crore in the same period a year ago.
Shares of the company have delivered 6.57 percent returns to its shareholders this year so far but declined 1.6 percent on Friday to 914.45 on the BSE in anticipation of the earnings announced post market hours.