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Reuters
27-05-2025
- Business
- Reuters
India's LIC posts quarterly profit rise on lower employee costs
May 27 (Reuters) - Life Insurance Corporation of India ( opens new tab, the country's biggest insurer, reported a 38% rise in fourth-quarter profit on Tuesday, helped by lower employee-related expenses. LIC's profit after tax rose to 190.13 billion rupees ($2.23 billion) for the quarter ended March 31 from 137.63 billion rupees a year earlier. Its employee renumeration and welfare costs fell to 59.28 billion rupees from 137.50 billion rupees a year earlier. However, net premium income dropped 3% to 1.48 trillion rupees. LIC's policy sales in the quarter were under pressure due to new regulations implemented earlier in the fiscal year, which reduced the charges policyholders paid if they closed their policies before maturity. The insurer had boosted sales before the norm changed from October. Its solvency ratio, the measure of an insurer's ability to meet its long-term financial obligations, rose to 2.11 during the quarter from 1.98 a year earlier and 2.02 in the prior quarter. Shares of the insurer ended 0.14% higher ahead of results. ($1 = 85.3610 Indian rupees)
Entrepreneur
20-05-2025
- Business
- Entrepreneur
The New India Assurance Reports Q4 Profit Dip Despite Operational Gains for FY25
Despite the dip in quarterly net profit, NIACL's operating performance showed notable improvement. Operating profit more than doubled to INR 516.8 crore in Q4FY25 from INR 208.8 crore in the year-ago period You're reading Entrepreneur India, an international franchise of Entrepreneur Media. The New India Assurance Company Ltd. (NIACL), an Indian general insurer, reported a marginal 2.1 per cent year-on-year decline in net profit at INR 346.6 crore for the quarter ended March 31, 2025, compared to INR 353.9 crore in the same period last year. The figures were disclosed in a regulatory filing submitted by the company on Monday. Despite the dip in quarterly net profit, NIACL's operating performance showed notable improvement. Operating profit more than doubled to INR 516.8 crore in Q4FY25 from INR 208.8 crore in the year-ago period. The underwriting loss narrowed significantly to INR 1,142.6 crore from INR 1,682.6 crore in Q4FY24, driven by lower claims and better cost controls. Gross written premium (GWP) in the fourth quarter rose 8.1 per cent year-on-year to INR 11,432.6 crore, signaling steady business momentum. Asset quality also improved, with the gross non-performing asset ratio falling sharply to 0.23 per cent from 0.72 per cent in the previous quarter. Operational efficiency gains were further evident as the combined ratio—a key indicator of profitability in the insurance sector—improved sequentially to 111.46 per cent from 116.28 per cent. For the full fiscal year 2024–25, NIACL recorded an all-time high GWP of INR 43,618 crore, reflecting a 3.86 per cent increase over the INR 41,996 crore reported in FY24. However, annual net profit declined 12.86 per cent to INR 2,988 crore, down from INR 3,429 crore in the previous year. The drop was primarily due to a provision of INR 802 crore made towards legacy non-moving reinsurance balances. Girija Subramanian, chairman & MD, NIACL, said, "It gives me great pleasure to inform you that NIACL has achieved an all-time high GWP of INR 43,618 crore in FY25, reflecting a growth of 3.86 per cent despite challenging market conditions. Even more encouraging is that our continued emphasis on profitable growth over the past several quarters is now yielding results." Subramanian highlighted a reduction in underwriting losses by 11 per cent, improved claim ratios, and a stronger solvency position. "The solvency ratio has improved from 1.81x in FY24 to 1.91x in FY25, underscoring the company's financial strength," she added.
