Life Insurance Corporation of India (LIC) has reported its Q3 results for FY2024, highlighting a 9% decline in net premium income and a 17% increase in standalone net profit. Here’s a breakdown of the key figures:
- Net Premium Income: LIC’s net premium income for Q3 FY2024 stood at Rs 1,06,891 crore, marking a decline of 9% from Rs 1,17,017 crore in Q3 FY2023.
- Standalone Net Profit: Despite a decrease in premium income, LIC’s standalone net profit surged by 17%, reaching Rs 11,056 crore, up from Rs 9,444 crore in the same period last year.
- Total Income: The total income for the insurer decreased to Rs 2,01,994 crore for the quarter, compared to Rs 2,12,447 crore in Q3 FY2023.
Key Highlights:
- Solvency Ratio: LIC’s solvency ratio, a crucial indicator of the company’s ability to meet long-term financial obligations, increased to 2.02 from 1.93 a year ago, reflecting its strong financial position.
- Assets Under Management (AUM): LIC’s AUM grew by 10.3% YoY, reaching Rs 54 lakh crore as of December 31, 2024, showcasing robust growth in assets.
- Employee Compensation: LIC reported a 30% reduction in employee compensation and welfare expenses compared to the same quarter last year.
- Impact of Regulations: The company faced challenges in policy sales during the quarter due to the implementation of new regulations.
While LIC’s financial performance in terms of profit growth is commendable, the drop in net premium income reflects a challenging environment. Furthermore, the insurer’s solvency ratio improvement and asset growth underscore its stability in the face of regulatory pressures and market conditions.
Stock Performance:
- LIC’s share price closed 2.15% lower, settling at Rs 811 per share on the NSE on Friday, amid a mixed sentiment in the market due to the decline in net premium income.
