LIC Q2 profit surges 32% to ₹10,053 cr

The net profits of Life Insurance Corporation (LIC), a state-owned company, in July-September increased 31.92 per cent year-on-year (Yo-Y) to ₹10,053.4 crore, supported by growth in its core business and investment income and a decline in expenses.

- AATHIRA VARIER

Net premium income in the quarter was up 5.5 per cent Yo-Y to ₹1.3 trillion as against ₹1.2 trillion in Q2FY2s.

Net income from investment was up nearly 3 percent Yo-Y to 1.12 trillion.

During the post-earnings media call, LIC’s management said it showed an 11 per cent Yo-Y growth rate of investment in equity. In the debt market the company has shown an increase of 15 percent Yo-Y from last year. Additionally, the insurance giant has written bond forward-rate agreements (FRAs) of ₹12,000 crore from March to September this year.

Annualised premium equivalent (APE) slipped 0.5 per cent Yo-Y to ₹16,382 crore from ₹16,465 crore in the year-ago period.

Muted growth was due to modification in products after surrender value norms, a high base effect, and changes in the goods and services tax (GST) rate structure.