1. LIC posts Q3 profit rise on higher shareholders' fund transfer

LIC posts Q3 profit rise on higher shareholders' fund transfer

blog author image

Upstox

blog verification badge

1 min read • Updated: February 8, 2024, 7:09 PM

Facebook PageTwitter PageLinkedin Page

Summary

LIC, India's largest insurer, posted a profit after tax of ₹9,444 crore ($1.14 billion) for the quarter ended Dec. 31, up from ₹6,334 crore a year ago.

LIC-Logo.jpg
LIC Q3 profit rise

BENGALURU, Feb 8 (Reuters) - Life Insurance Corporation of India reported a near 50% rise in third-quarter profit on Thursday, as it moved more money to a shareholders' fund to shore up its bottom line.

LIC, India's largest insurer, posted a profit after tax of ₹9,444 crore ($1.14 billion) for the quarter ended Dec. 31, up from ₹6,334 crore a year ago.

The company transferred ₹7,692 crore from its non-participating fund to a shareholders' fund for the quarter, it said. LIC had transferred ₹5,670 crore in the year ago quarter.

The premium LIC collects from 'non-participating' policies, which have fixed returns, is parked in a non-participating fund.

Since 2022, it has been transferring some of this every quarter to a shareholders' fund, aiding its profit. LIC had said the transfers were to shore up its solvency margin.

Its solvency ratio, the measure of an insurer's ability to meet its long-term debt obligations, improved to 1.93 in the third quarter from 1.85 a year ago.

Net premium income rose nearly 4.6% as its total premium for December nearly doubled year-over-year after registering declines in the previous two months.