BENGALURU, Aug 6 (Reuters) – Life Insurance Corporation of India reported a 23% increase in first-quarter profit on Thursday, helped by a rise in premium income from new policies.
The insurer’s net profit rose to 134.92 billion rupees ($1.42 billion) for the quarter ended June 30, from 109.87 billion rupees a year earlier.
Analysts had expected LIC to report strong new business growth during the quarter as demand for traditional life insurance remained buoyant after tax changes late last year.
A favourable year-ago base, continued momentum in group insurance and increased focus on more profitable products which don’t pay policyholders bonuses or dividends were also expected to boost earnings.
LIC’s new business growth was subdued in the year-ago quarter after regulatory changes made it easier for customers to exit policies before maturity.
The state-run insurer’s net premium income increased nearly 7% year-on-year to 1.27 trillion rupees in the quarter through June. First year premiums from new policies rose 22.5%, while renewal premiums increased 3%.
($1 = 95.2200 Indian rupees)
(Reporting by Nishit Navin; Editing by Ronojoy Mazumdar)
