LIC Q2 results: Profit falls 50% YoY to Rs. 7,925cr
The Life Insurance Corporation of India (LIC) saw a major 50% year-on-year (YoY) drop in net profit for the quarter ending September, plummeting to Rs. 7,925 crore. Additionally, the net premium income decreased by almost 19% YoY to Rs. 1.07 lakh crore. This huge decline in both profit and income highlights the obstacles faced by India's leading insurer during this time. LIC's share price closed 0.74% lower ar Rs. 610.25 apiece on NSE.
Key financial metrics and ratios
For the quarter, LIC's net commission amounted to Rs. 6,077 crore, up from Rs. 5,808 crore the previous year. The solvency ratio at the end of September increased to 1.90 times from 1.88 times a year earlier. The gross non-performing assets ratio improved to 2.43%, compared to 5.60% a year ago. The 13th-month persistency ratio rose to 71.19%, up from 70.52% a year ago. Investment yields, excluding unrealized gains, was 9.11% as of September-end, up from 8.73% a year ago.
Other income and half-year performance
Other income for the quarter drastically fell to Rs. 248 crore, down from Rs. 6,795 crore a year ago, impacting LIC's overall earnings. The provision for diminution of value in investments for the quarter reached Rs. 82.7 crore, while no provision was made during the same period last year. As of September-end, assets under management increased by 10.5% to Rs. 47.43 lakh crore, and the Indian Embedded Value rose by 21.7% to Rs. 6.62 lakh crore.
