LIC shares jump 6% after state insurer posts 14-fold jump in net profit
LIC changed hands on the NSE around 9:35 am. LIC on Thursday reported that its standalone net profit for the quarter ended June 2023 rose multifold to Rs 9,544 crore. The same stood at Rs 683 crore in the same quarter of last year.
The net premium income, meanwhile, was flat at Rs 98,363 crore in the said quarter. It was Rs 98,351 crore in the year-ago period. On a sequential basis, net profit fell 29% from Rs 13,428 crore reported in the previous quarter.
The net premium income dropped 25% quarter-on-quarter (QoQ). Income from investments jumped 30% to Rs 90,309 crore during the quarter under review, compared with Rs 69,571 crore in the corresponding quarter of the previous fiscal. Other income during the quarter stood at Rs 75 crore, down nearly 53% from Rs 160 crore a year ago.
The first-year premium dipped 8% during the first quarter to Rs 6,811 crore as against Rs 7,429 crore in the same period of last year. LIC reported a profit before tax of Rs 9,634 crore in the June quarter, which too jumped multiple times from just Rs 799 crore reported in the year-ago period. The insurer's solvency ratio stood at 1.89 in the April-June period, as against 1.87 in the last-year period and 1.88 in the preceding March quarter.
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