State-run insurance firm Life Insurance Corporation of India (LIC) reported an enormous bounce in internet earnings on Friday to Rs 15,952 crore in Q2 from Rs 1,434 crore a yr in the past. This is on the again of a 27 per cent bounce in premium earnings and large positive aspects from adjustments within the companies accounting coverage together with funding earnings.
40 per cent of internet earnings got here from funding income which reached Rs 6,798.61 crore this yr. Although that is nonetheless down from Rs 6,961.14 crore reported a yr in the past.
LIC in its trade filings stated that the underside line can also be boosted by positive aspects from adjustments within the companies accounting coverage.
After going public in May, LIC reported a internet revenue of simply Rs 682.9 crore within the June quarter.
Lower commissions to the brokers and a pointy decline in worker prices are additionally being attributed to this large spike in revenue. LIC in its submitting stated that the company commissions virtually halved to Rs 5,844 crore from Rs 10,896 crore a yr in the past and its worker price got here in at a a lot decrease Rs 16,474.76 crore from Rs 24,157.5 crore. The insurer didn’t state any causes for this decline. LIC’s majority of Business comes from its greater than 15 lakh brokers.
Net premium earnings was Rs 1.32 lakh crore from Rs 1.04 lakh crore within the year-ago quarter, whereas the whole earnings rose to Rs 2.22 lakh crore from Rs 1.87 lakh crore.
The firm stated that first-year premium earnings rose to Rs 9,175.89 crore from Rs 8,270.91 crore a yr in the past and renewal premium rose to Rs 56,514.63 crore from Rs 55,342.62 crore and single premium earnings rose to Rs 67,021.9 crore from Rs 41,428.7 crore.
The solvency ratio was at 1.88 per cent, just like the June quarter. The solvency ratio measures an insurer’s money circulate compared to the quantity it owes as complete life cowl.
Gross non-performing property stood at Rs 26,111 crore, down from Rs 26,619 crore 1 / 4 in the past, and Rs 28,929 crore a yr in the past. The gross NPAs declined to five.60 per cent from 5.84 per cent within the June quarter and 6.57 per cent within the year-ago interval.
LIC’s thirteenth month persistency ratio was additionally up 70.52 per cent on this quarter from 68.81 per cent a yr in the past. The thirteenth month persistency ratio measures a buyer’s stickiness with the insurer.
