LIC reports record profits, insurance giant chief plans meet with Adani Group management

The LIC chairman will meet Adani Group top management soon and seek clarification on the conglomerate's recent crises, the state-run insurance company said on Thursday, February 9. "We are soon going to call them (the Adani Group) to meet us and explain. We want to understand what is happening in the market and in the group," LIC chairman MR Kumar said Thursday. The announcement came on the same day the Life Insurance Corporation of India reported its financial results for the third quarter.

LIC reported a consolidated net profit of Rs 8,334 crore. This is a multifold jump because the insurer reported a profit of only Rs 235 crore in the same period last fiscal. The massive profit came as the company managed to improve on premium income and moved Rs 5,570 crore to its shareholders' fund to shore up its net worth.    

The insurer earned Rs 1,11,787.6 crore in net premium income during the reporting quarter as against Rs 97,620.34 crore in the year-ago period, it said in a regulatory filing. The numbers are not strictly comparable as the insurer was not a publicly traded company earlier.

MR Kumar, Chairman, LIC said, "We continue to remain focused on creating a portfolio mix to optimize value for all stakeholders, and in that context, increasing the proportion of Non-par business in a consistent and profitable manner.

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— LIC India Forever (@LICIndiaForever)

LIC's regulatory filing comes amid concerns in certain quarters over the company's exposure to Adani Group enterprises. The Centre has said that LIC has informed the government that it strictly follows the statutory framework and regulations while making investments.

"LIC has informed that all investments of LIC are carried out strictly as per the statutory framework of the Insurance Act, 1938 and the IRDAI Investment Regulations, 2016 and are guided by a detailed governance mechanism," Bhagwat Karad, Minister of State for Finance told the Rajya Sabha in a written reply on Tuesday. 

The insurer said last week that it has investments to the tune of Rs 35,917.31 crore in Adani group's debt and equity securities, which is 0.975% of LIC's total assets under management of more than Rs 41.66 lakh crore. 

(With inputs from PTI)