India's Life Insurance Corp posts quarterly profit rise on strong retail demand
- The insurer’s net profit rose to 234.20 billion Indian rupees for the three months ended March 31
BENGALURU: State-owned Life Insurance Corporation of India reported a 23% rise in quarterly profit on Thursday, supported by a rise in premium collections on strong retail demand.
The insurer’s net profit rose to 234.20 billion rupees ($2.43 billion) for the three months ended March 31, up from 190.13 billion rupees a year earlier.
Analysts had expected a strong quarter for India’s largest insurer, after tax changes late last year lifted demand for insurance in the world’s most populous country, though they also said the Middle East conflict could have dented customer sentiment somewhat in March, hurting sales of market-linked policies.
LIC’s net premium income grew 11.5% to 1.65 trillion rupees. One-time premiums rose 21.5%, while first year premiums from new policies rose around 17%.
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The firm’s solvency ratio, which measures an insurer’s ability to meet its long-term financial obligations, rose to 2.35 during the quarter from 2.11 a year earlier. A higher number means a larger financial buffer for the insurer.
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