India’s LIC posts higher profit 

Life Insurance Corporation of India , the country’s largest insurer, reported a 32% rise in second-quarter profit, driven by higher premiums from renewed and single-payment policies along with a decline in commission expenses.

LIC’s profit after tax rose to 100.53 billion rupees ($1.14 billion) for the quarter ended September 30, from 76.21 billion rupees a year earlier.

In a single-premium policy, the policyholder pays the entire amount upfront at the start of the term, while renewal premiums refer to payments made to continue existing policies.

Analysts said LIC had sped up its sales prior to October 2024 to head off new regulations that reduced the charges levied on policyholders when closing their policies before maturity.

While LIC’s first-year premium dropped 3% year-on-year due to the regulation change, it posted an 8% rise in its single premiums and 5% rise in renewals.

As a result, its net premium income rose 5.5% to 1.26 trillion rupees.

LIC’s operating expenses and commissions paid dropped 6.5% to 152.34 billion rupees.

The solvency ratio, the measure of an insurer’s ability to meet its long-term financial obligations, stood at 2.13 during the quarter compared with 1.98 a year earlier and 2.17 in the prior quarter.