Life Insurance Corporation (LIC), the largest life insurance company in India, has reported a decline in its consolidated net profit for the second quarter (Q2) of the fiscal year 2024. The company’s profit for the period stood at Rs 7,729 crore, marking a 3.75% decrease from Rs 8,030.28 crore in Q2 FY23. Despite the decline, LIC showed a strong performance in premium income and investment returns.
LIC Q2 Results: Net Profit Decline: Key Financial Figures
| Financial Metric | Q2 FY24 | Q2 FY23 | YoY Change |
|---|---|---|---|
| Consolidated Net Profit | Rs 7,729 crore | Rs 8,030 crore | -3.75% |
| Standalone Net Profit | Rs 7,621 crore | Rs 7,925 crore | -4% |
| Net Premium Income | Rs 1.19 lakh crore | Rs 1.07 lakh crore | 0.11 |
| Investment Income | Rs 1.08 lakh crore | Rs 93,942 crore | 0.16 |
| Gross Non-Performing Assets (GNPA) | 1.72% | 2.43% | -0.71% |
| Stock Price (NSE Closing) | Rs 915.55 | - | -1.52% |
In its latest earnings report for Q2 FY24, LIC saw its consolidated net profit drop by nearly 4%. The insurance giant reported a profit of Rs 7,729 crore for the September 2024 quarter, compared to Rs 8,030 crore in the same period last year. This decline comes despite a robust increase in the company’s net premium income and investment income.
Check also: MRF Share Q2 Results: Profit Drops, Revenue Up 11%, ₹3 Dividend Declared
Consolidated Net Profit:
- Q2 FY24: Rs 7,729 crore
- Q2 FY23: Rs 8,030 crore
- Decline: 3.75%
LIC’s Standalone Profit for Q2 FY24
Alongside its consolidated financial results, LIC also reported its standalone performance for the quarter. The standalone net profit for Q2 FY24 stood at Rs 7,621 crore, reflecting a 4% decline from Rs 7,925 crore in Q2 FY23.
This decline in standalone profit was primarily due to an increase in the payout of insurance benefits, which exceeded the premium income during the quarter.
Standalone Net Profit:
- Q2 FY24: Rs 7,621 crore
- Q2 FY23: Rs 7,925 crore
- Decline: 4%
 Surge in Net Premium Income and Investment Income
One of the bright spots in LIC’s financial performance was the increase in net premium income and returns from investments.
- Net Premium Income: LIC reported a 11% YoY increase in net premium income, which rose to Rs 1.19 lakh crore in Q2 FY24, compared to Rs 1.07 lakh crore in the same quarter last year. This strong growth reflects the company’s continued dominance in the Indian insurance market.
- Investment Income: LIC’s investment income grew by 16% YoY in Q2 FY24, amounting to Rs 1.08 lakh crore, compared to Rs 93,942 crore in Q2 FY23. This growth in investment returns provides a cushion to LIC’s overall profitability.
Key Income Figures:
- Net Premium Income: Rs 1.19 lakh crore (11% YoY increase)
- Investment Income: Rs 1.08 lakh crore (16% YoY increase)
Asset Quality Improves: GNPA Shows Improvement
LIC’s Gross Non-Performing Assets (GNPA) showed a positive trend in Q2 FY24, improving to 1.72% from 1.95% in Q1 FY24. The company’s GNPA was 2.43% in the same quarter last year, highlighting a significant improvement in asset quality.
While the decline in non-performing assets is a positive development, it remains to be seen whether this trend continues in the coming quarters.
Gross Non-Performing Assets (GNPA):
- Q2 FY24: 1.72%
- Q1 FY24: 1.95%
- Q2 FY23: 2.43%