LIC reports 50% drop in Q2 net profit to Rs 7,925 crore, cites lower income

Life Insurance Corporation of India (LIC), the state-owned insurer, faced a significant setback in its second-quarter performance, reporting a 50% decline in net profit to Rs 7,925 crore for the quarter ending September 30. The dip in profitability is attributed to lower income compared to the same period last year.

LIC's net premium income also experienced a notable decrease, falling from Rs 1,32,631.72 crore to Rs 1,07,397 crore in the second quarter of the current fiscal. The total income for the quarter stood at Rs 2,01,587 crore, a decline from Rs 2,22,215 crore in the corresponding period last year.

The company's financial results for the second quarter are marked by a significant shift due to changes in accounting policies. LIC transferred Rs 6,277 crore from its non-participating fund to a shareholders' fund for the quarter ended September 30, as part of efforts to enhance profitability. However, this transfer amount is notably lower than the Rs 14,272 crore transferred in the same period last year.

LIC highlighted that the results for the second quarter are not directly comparable due to the altered fund transfer dynamics, providing a unique context for the decline in profitability. Despite the challenges faced in the recent quarter, LIC remains a key player in the insurance sector, navigating changes to optimise its financial performance.