Life Insurance coverage Corp of India (LIC) has posted a revenue after tax of Rs79.25bn ($951.4m) for the second quarter (Q2) of fiscal 12 months 2024 (FY 2024), a drop of fifty% from Rs159.52bn a 12 months in the past.
The drop is attributed to diminished earnings from insurance coverage premiums.
LIC’s internet premium earnings for the quarter that ended 30 September 2024 plummeted 18.7% to Rs1.07bn from Rs1.32bn a 12 months earlier.
For the quarter, LIC’s complete earnings declined to Rs2trn from Rs2.22tn within the year-ago interval.
Following the change in its accounting coverage, LIC has transferred Rs62.77bn from its non-participating fund to a shareholders’ fund for Q2 2024 to spice up its profitability.
In a press assertion, the insurer mentioned: “An quantity of Rs137.68bn (internet of tax) has been transferred for the six months ended September (Rs62.77bn for September quarter and Rs74.91bn for the April-June interval), because of which the revenue for the quarter ended 30 September will not be comparable with the corresponding figures for the September quarter.”
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LIC famous that its solvency ratio for the interval was 1.90% as in comparison with 1.88% within the corresponding year-ago interval.
The insurer’s expense of administration ratio for the most recent quarter decreased to 17.20% from 18.24%.
For the half 12 months ended 30 September 2023, complete premium earnings was Rs2.05tn as in comparison with Rs2.30tn for the year-ago interval.
On this interval, the corporate bought as many as 8,060,725 insurance policies within the particular person phase, down from 8,359,029 insurance policies bought in H1 final 12 months.
LIC chairperson Siddhartha Mohanty mentioned: “In the course of the first six months of this monetary 12 months, we’ve been in a position to implement methods efficiently to boost the share of non-par merchandise in our total particular person enterprise.
“The present VNB [value of new business] margins are an indicator of our initiatives delivering the target of sustaining profitability as we modify path. We’re acutely aware of the market dynamics in sure components of our enterprise and are working in the direction of profit-oriented consolidation.”