New Delhi: India's foremost public-sector insurer, Life Insurance Corporation (LIC), has witnessed a significant dip in its second-quarter profits, marking a substantial 50% reduction. According to LIC's regulatory filing, the insurer reported a profit of ₹7,925 crore for the quarter ending September 30, contrasting sharply with the ₹15,952 crore recorded in the same period the previous year.
The company's net income also experienced a notable decline, registering ₹1,07,397 crore in the second quarter of the current fiscal, down from ₹1,32,631.72 crore in the corresponding period last year.
LIC's total income for the latest September quarter stood at ₹2,01,587 crore, a decrease from ₹2,22,215 crore in the year-ago period.
The reported decline in profit is attributed to a decrease in premium income, and it further reflects in a reduced contribution to its shareholders' fund, as per Reuters.
The net income decline is marked at 18%, and in an effort to enhance profitability following an alteration in accounting policy, LIC transferred ₹62.77 billion from its non-participating fund to the shareholders' fund for the quarter ending September 30, as disclosed by the company.
Comparisons between the results for the second quarter of this year and the previous year should be approached cautiously due to the non-comparability arising from the fund transfer, as noted by LIC. Last year, the insurer had transferred a significantly higher amount, totaling ₹142.72 billion.
These developments signify a strategic response from LIC as it navigates changes in its financial landscape, emphasizing the need for careful consideration of the evolving financial dynamics impacting India's insurance sector.
[Note: The news article has been edited by Business Universe and collected inputs from from PTI and REUTERS.]
