3 weeks ago

LIC flags household income pressure as Q1 profit climbs 23%

LIC flags household income pressure as Q1 profit climbs 23%
LIC flags pressure on customer incomes even as Q1 profit rises 23% · livemint.com

LIC is a very big insurance company in India that helps people save money and protect their families.

This story is about how LIC did in the first three months of its financial year.

The good news is that LIC earned a lot more profit than before — about 23 percent more.

But the person in charge, Mr. Doraiswamy, said people are finding it hard to save because they have less spare money left after paying for everyday things.

When people have less spare money, they buy fewer insurance and savings plans.

Some plans that depend on the stock market were also affected by a conflict far away in West Asia.

To do better, LIC is selling more plans that bring in higher profit, like plans with fixed benefits.

LIC is also reaching out to customers whose policies stopped to help them restart them.

LIC looks after a huge amount of money, about ₹59.39 trillion, for its customers.

The company says it is still too early to tell if the tough period is over.

Key facts

Company
Life Insurance Corp. of India (LIC)
CEO & MD
R. Doraiswamy
Q1 Profit After Tax
₹13,492 crore (up 22.81%)
Total Premium Income
₹1.27 trillion (up 6.75%)
Value of New Business (VNB)
₹3,136 crore (up 61.32%)
Net VNB Margin
22.9% (up from 15.4%)
Assets Under Management (AUM)
₹59.39 trillion (up 4.1%)
Solvency Ratio
2.42 (up from 2.17)

Quotes

R. Doraiswamy

Chief Executive and Managing Director of LIC

“"Our focus will be on increasing protection certainly in the next few quarters. We want some big improvement in the contribution that we receive from protection."”
livemint.com
“"We depend on the disposable income of the customers, and when that income gets impacted, there will be an impact certainly on the way people save."”
livemint.com

Sources

Related news