- LIC's Q2 net profit rose 32% to Rs 10,053 crore from Rs 7,621 crore year ago
- Total income increased to Rs 2,39,614 crore in September quarter from Rs 2,29,620 crore
- Net premium income grew 5.5% to Rs 1.26 lakh crore in the quarter under review
The performance of Life Insurance Corp in the September quarter got a lift from going back to the basics, believes Chief Executive Officer and Managing Director R Doraiswamy. "Our sharper focus on strengthening the core business has driven profitability," he explained, adding that improved investment returns and tighter expense management also helped boost the bottom line.
The state-owned insurer had reported a 32% jump in net profit to Rs 10,053 crore for the second quarter ended September 30. The insurer had reported a net profit of Rs 7,621 crore in the year-ago period.
In a consumer-friendly move, LIC has passed on the entire GST benefit to policyholders — making its policies more affordable than before. Doraiswamy expects this to show up in the numbers soon: "We anticipate a strong uptick in topline growth in the second half."
Cost discipline remains a priority. "We are continuing to rationalise expenses, so costs will remain under control," he says. At the same time, LIC is pushing new product launches to match evolving customer expectations and market trends.
Doraiswamy notes a shift in consumer behaviour: as markets evolve, the idea of individuals proactively building their own retirement corpus is gaining momentum, and LIC intends to position itself at the centre of that shift.
LIC Q2 Results
The country's biggest insurer's total income improved to Rs 2,39,614 crore in the latest September quarter compared to Rs 2,29,620 crore in the year-ago period, LIC said in a regulatory filing. The total expenses rose to Rs 2,30,160 crore in the quarter against Rs 2,22,366 crore in the same period a year ago.
Net premium income, meanwhile, saw an uptick of 5.5% annually to Rs 1.26 lakh crore during the quarter under review. The solvency ratio is up to 2.13% from 1.98% in the year-ago period, while asset quality for policyholders' funds improved.
Watch The Whole Conversation Here
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
