Home / Companies / Company Results /  LIC Q2 results: PAT rises multi-fold to 15,952 cr, net premium income up 27%

State-run insurance giant Life Insurance Corporation (LIC) on Friday said its September quarter consolidated net profit after tax (PAT) surged multi-fold to 15,952 crore from 1,434 crore in the corresponding quarter of the last fiscal year. The insurer recognised a gain due to changes in its accounting policy.

In the April to June quarter, the insurance giant had reported a net profit of 682.9 crore.

LIC's net premium income improved to 1.32 lakh crore in the reporting quarter, up 27% from 1.04 lakh crore in the year-ago period. The net income from investments jumped 10% YoY to 84,104 crore.

The first-year premium, an indication of business growth, was at 9124.7 crore, up 11% for the quarter compared with 8198.30 crore a year ago.

The renewal premium rose 2% to 56,156 crore while single premium soared 62% to 66,901 crore.

LIC's gross non-performing assets (NPA) for the September quarter came at 26,111 crore, as against 26,619 crore a quarter ago, and 28,929 crore a year ago.

The gross NPA ratio was down to 5.60% at the end of Q2 from 5.84% in Q1, and 6.57% a year ago.

tHE INSURERs 13th month persistency ratio - that measures a customer’s stickiness – was 70.52% in Q2, compared to 68.81% a year ago.

Ahead of the announcement of the result, LIC stock ended 1.17% higher at 628.05 on BSE. The insurer, which listed in May following a record $2.7 billion share sale, has seen its stock tumble more than 28% from the listing price of 872.

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Meghna Sen

Meghna Sen is a deputy chief content producer at Livemint where she tracks companies, news, markets. She has 5+ years of experience with print and online publications. Email: meghna.sen@htdigital.in
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