LIC Q3FY25 profit grows 17% to Rs 11,056 cr as employee costs decline
Mumbai: Life Insurance Corporation of India (LIC), the country’s largest insurer, posted a 17% increase in its third-quarter profit, driven by lower employee-related expenses, Reuters reported.
The insurer’s profit after tax for the quarter ended December 31 rose to Rs 11,056 crore ($1.26 billion), compared to Rs 9,444 crore in the same period last year. Employee compensation and welfare expenses declined by 30% to Rs 6,691 crore.
LIC faced pressure on policy sales due to new regulations that reduced charges for policyholders closing policies before maturity.
The company had accelerated sales ahead of the regulatory change in October.
Net premium income dropped 9% to Rs 1.07 trillion, impacted by a 24% decline in single premiums and a 14% decrease in first-year premium collections.
The insurer’s solvency ratio, which indicates its ability to meet long-term financial commitments, improved to 2.02 from 1.93 a year earlier and 1.98 in the previous quarter.
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