LIC profit declines 3.83% in September quarter

LIC CEO said, "Our strategy on enhancing market share along with changes in product and channel mix, without compromising on profitability, is yielding very visible results."

The first-year premium income during the second quarter increased 12 per cent to Rs 11,201 crore, compared with Rs 9,988 crore in the same quarter of the previous year.

Life Insurance Corporation (LIC), India’s largest financial institution, on Friday reported a 3.83 per cent decline in its standalone net profit at Rs 7,621 crore for the quarter ended September 2024 as against Rs 7,925 crore in the year-ago quarter.

LIC said net premium income during the reporting quarter increased 11 per cent year-on-year (YoY) to Rs 1.19 lakh crore, compared with Rs 1.07 lakh crore in the same quarter last year. Income from investments during the second quarter rose 16 per cent year-on-year to Rs 1.08 lakh crore in the September quarter, compared with Rs 93,942 crore in the same quarter last year.

The first-year premium income during the second quarter increased 12 per cent to Rs 11,201 crore, compared with Rs 9,988 crore in the same quarter of the previous year.

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The corporation’s Indian embedded value (IEV) as of September 2024 was at Rs 821,716 crore as compared to Rs 662,605 crore as of September 2023, registering an increase of 24.01 per cent over the previous year.

LIC’s assets under management (AUM) increased to Rs 55,39,516 crore as of September 2024 as compared to Rs 47,43,389 crore of September 2023, registering an increase of 16.78 per cent year on year.

“Our strategy on enhancing market share along with changes in product and channel mix, without compromising on profitability, is yielding very visible results. Further we have aligned our products with the new regulatory guidelines by redesigning them in such a manner that the interest of customers, shareholders and various marketing channel partners are taken care of,” said Siddhartha Mohanty, CEO & MD, LIC.

“At LIC we are confident that all such changes which are friendly to customers will eventually expand the life insurance market in the country. We are committed to continue to play a significant role in the further development of the life insurance market with the support of all our stakeholders,” he said.

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“In terms of market share measured by first year premium income (FYPI), LIC continues to be the market leader in Indian life insurance business with overall market share of 61.07 per cent for the half year ended September 2024 as compared to 58.5 per cent for half year ended September 2023,” it said.

LIC to consider buying health insurer

LIC MD and CEO Siddhartha Mohanty on Friday said the corporation will take a call on buying a stake in a standalone health insurance company in the current financial year.

“The ground work is going on… search for suitable health insurance company is going on… we will finalise stake within this financial year,” Mohanty said during a media conference. Asked about the quantum of stake LIC will have in health insurance company, he said it would depend on various factors, including valuation.