LIC Q3 results: Net profit increases 17%, Net Premium income declines by 9%
Employee compensation and welfare expenses fell by 30%, totaling Rs 6,691 crore.
LIC Q3 results Net profit increases 17, Net Premium income declines by 9
The Life Insurance Corporation of India, the largest insurer in the country, reported a 17% increase in profit for the third quarter on Friday, driven by a decline in employee-related expenses. For the quarter ending December 31, LIC's profit after tax rose to Rs 11,056 crore ($1.26 billion), up from Rs 9,444 crore a year earlier.
Employee compensation and welfare expenses fell by 30%, totaling Rs 6,691 crore.
However, LIC's policy sales during the quarter faced challenges due to new regulations that lowered the charges for policyholders who opted to close their policies before maturity. Before the change in regulations that took effect in October, the insurer had experienced a boost in sales.
Join PSU Connect on WhatsApp now for quick updates! Whatsapp Channel
Its net premium income dropped 9% to Rs 1.07 trillion, driven by a 24% fall in single premiums and a 14% decline in first-year premium collection. Solvency ratio, the measure of an insurer's ability to meet its long-term financial obligations, rose to 2.02 during the quarter from 1.93 a year earlier and 1.98 in the prior quarter.
Read Also : SpiceJet to Infuse INR 294 Crore by Promoter Group, Raising Stake to 33.47%