LIC’s Q2 net profit slumps 50pc on lower premium income

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NEW DELHI: Life Insurance Corporation (LIC) of India on Friday reported a 50 per cent slump in its standalone net profit at Rs 7,925 crore for the July-September quarter. The insurance major had, in the same quarter last year, reported a net profit worth Rs 15,952 crore.

The profits were largely suppressed due to a fall in its premium income. The insurance major’s net premium income fell 19 per cent to Rs 1.07 lakh crore in the said September quarter, against Rs 1.32 lakh crore in the year-ago period.

The Board of Directors of Life Insurance Corporation of India (LIC) approved and adopted the standalone and consolidated financial results for the quarter and half year ended September 2023. “We are conscious of the market dynamics in certain parts of our business and are working towards profit-oriented consolidation”, said Siddhartha Mohanty, chairperson, LIC.

“The distribution mix is also more diversified with increase in share of bank assurance and alternate channels. We continue to remain focused on creating higher customer value through digital innovations. We are thankful to all our stakeholders for their continued support”, said Mohanty.

The much-awaited stock market listing of Life Insurance Corporation of India last year failed to cheer investors as the scrip debuted at about a 9 per cent discount at Rs 867.20 apiece, against its issue price of Rs 949. Cut to today, they are trading at Rs 609.8, about 30 per cent from their exchange debut.

The Ministry of Finance in September this year approved a series of welfare measures for the benefit of Life Insurance Corporation of India (LIC) agents and employees.

The ministry decided to enhance the gratuity limit from Rs 3 lakh to Rs 5 lakh for LIC agents, aiming to bring substantial improvements to the working conditions and benefits of those individuals.

The term insurance cover for the agents has been expanded from the existing range of Rs 3,000-10,000 to Rs 25,000-150,000. This enhancement in term insurance is expected to significantly benefit the families of deceased agents. (ANI)

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