LIC shares rise 6% as year-on-year profit skyrockets 1,300%
Shares of Life Insurance Corporation of India (LIC) soared nearly 6% on the NSE in early trade after the state insurer reported a 14-fold increase in net profit for the June quarter of FY24. The standalone net profit reached Rs. 9,544 crore, up from Rs. 683 crore in the same quarter last year. Meanwhile, the net premium income remained flat at Rs. 98,363 crore.
Pre-tax profit and investment yields increased significantly
LIC's profit before tax for the June quarter also saw a significant jump, reaching Rs. 9,634 crore compared to Rs. 799 crore last year. The yield of investments on policyholders' funds increased to 8.78% as of June, up from 7.74% in the previous quarter. However, LIC's first-year premium dipped 8% during the first quarter to Rs. 6,811 crore.
Income from investments soared by 30%
LIC's income from investments jumped 30% to Rs. 90,309 crore during the quarter under review, compared to Rs. 69,571 crore in the corresponding quarter of the previous fiscal. However, other income during the quarter stood at Rs. 75 crore, down nearly 53% from Rs. 160 crore a year ago. LIC is still down by around 25% since its IPO debut on May 17, 2022.
