LIC Q2 profit: LIC Q2 net profit reaches Rs 15,952 crore
A total of ₹15.03 lakh crore was transferred to shareholders’ account at the end of September, following which the net profit rose to ₹15,952 crore from ₹1,434 crore in the same quarter the last year. Analysts described the increase as one-time gains.
The transfer to the shareholders’ account follows LIC’s decision to divide its surplus into equity and non-equity funds. Consequently, the entire surplus of the non-participating funds was attributed to the shareholders.
A participating policy allows the policyholder to participate in the profits of the company while a non-participating (non-participating) policyholder cannot.
As of September 30, 2021, LIC has separate participating funds and non-participating funds following the amendment of the Life Insurance Companies Act by the Finance Act 2021.
Results released on Friday showed net premium income after adjusting for reinsurance costs increased by 26% to ₹1.32 lakh crore from ₹1.04 lakh crore a year ago.
Single premium income increased by 62% to ₹66,902 crore. Benefit claims also remained little changed at ₹84,269 crore in September 2022 from ₹85,452 crore a year earlier, though higher than the ₹68,657 crore the company paid in the quarter ended. in June 2022.
Analysts said the rise in net profit is unique due to the transfer to shareholder funds, although the company’s new business value growth, industry under-penetration, distribution weight of LIC, cost control and brand recall are major assets. for the insurance giant.