Life Insurance Corporation (LIC), the largest insurance company in the country, reported a massive net profit of Rs 15,952 crore for the quarter ended September 30, 2022 (Q2 FY23), from Rs 1,433 crore in the same period last year. The insurance giant recorded a net profit of just Rs 682.9 crore in the June quarter.
As per its filing on Friday, the company has said that the massive surge is due to change in its accounting policy.
Its first-year premium, which shows business growth, was at Rs 9,124.7 crore for the September quarter compared with Rs 8,198.30 crore a year ago.
The net premium income was at Rs 1.32 lakh crore this quarter as compared to Rs 1.04 lakh crore in the year-ago period.
LIC’s renewal premium rose 2 per cent to Rs 56,156 crore, while single premium increased 62 per cent to Rs 66,901 crore.
Emkay Global had predicted that LIC will report a 19 per cent YoY drop in net profit this quarter compared with Rs 1,504 crore in the corresponding quarter last year.
It added that APE will grow 15 per cent YoY to Rs 13,286.50 crore from Rs 11,548.80 crore, while VBN will rise 17 per cent YoY to Rs 1,854.10 crore from Rs 1,583 crore. The VBN margin was predicted at 13.95 per cent, up 24 bps over 13.71 per cent YoY.
The company’s stock ended 1.17 per cent higher at Rs 628.05 on BSE on Friday ahead of the results.
Also read: Zomato working on new ‘differentiated’ loyalty programme, says Deepinder Goyal
Also read: LIC shares rise after two days; here's what to expect from Q2 earnings today
Copyright©2023 Living Media India Limited. For reprint rights: Syndications Today