LIC Q2 Results: Net profit slumps 3.8% as expenses surge; total income grows 14%

The drop in profit comes amid a 14.42% increase in total expenses, which rose to ₹2.22 lakh crore in the latest quarter, up from ₹1.94 lakh crore in the year-ago period.

The state-owned insurer reported an 11.62% year-on-year rise in net premium income, growing from ₹1.07 lakh crore in Q2 FY24 to ₹1.20 lakh crore in Q2 of this fiscal. However, income from sources other than the company's main business saw a significant drop, declining by 41.53% to ₹145 crore in Q2 FY25, from ₹248 crore in the same period last year.

However, LIC’s total income rose by 14%, increasing from ₹2.02 lakh crore in Q2 FY24 to ₹2.30 lakh crore in the latest quarter of the current fiscal.

The country’s largest insurer reported an improvement in its solvency ratio, which rose to 198% as of September 30, 2024, from 190% a year ago. Simultaneously, gross non-performing assets (NPAs) decreased to 1.72% from 2.43% at the end of the same period last year.

For the first half ended September 2024, LIC reported a profit increase of 3.5%, reaching ₹18,082 crore, up from ₹17,469 crore in the first half of FY24, the insurer stated.

LIC retained its leading position in the Indian life insurance sector with an overall market share of 61.07% for the half-year ended September 2024-25, up from 58.50% in the first half of the previous fiscal, according to the IRDAI.

Total premium income grew by 13.56% to ₹2.34 lakh crore for the six months ended September 2024, compared to ₹2.06 lakh crore in the previous fiscal’s first half.

Individual New Business premium income also rose, reaching ₹29,538 crore in H1 FY25, a 17.29% increase from ₹25,184 crore in H1 FY24.

As of November 8, LIC’s total market capitalisation on the NSE stood at ₹5.79 lakh crore.

The stock closed in the red on Friday at ₹915.55, down 1.52% (-₹14.15) on the NSE.