BENGALURU (Reuters) -Life Insurance Corporation of India reported a near 50% rise in third-quarter profit on Thursday, as it moved more money to a shareholders’ fund to shore up its bottom line.
LIC, India’s largest insurer, posted a profit after tax of 94.44 billion rupees ($1.14 billion) for the quarter ended Dec. 31, up from 63.34 billion rupees a year ago.
The company transferred 76.92 billion rupees from its non-participating fund to a shareholders’ fund for the quarter, it said. LIC had transferred 56.70 billion rupees in the year ago quarter.
The premium LIC collects from ‘non-participating’ policies, which have fixed returns, is parked in a non-participating fund.
Since 2022, it has been transferring some of this every quarter to a shareholders’ fund, aiding its profit. LIC had said the transfers were to shore up its solvency margin.
Its solvency ratio, the measure of an insurer’s ability to meet its long-term debt obligations, improved to 1.93 in the third quarter from 1.85 a year ago.
Net premium income rose nearly 4.6% as its total premium for December nearly doubled year-over-year after registering declines in the previous two months.
($1 = 82.9610 Indian rupees)
(Reporting by Nishit Navin in Bengaluru; Editing by Eileen Soreng)
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