Latest news with #State-owned
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Business Standard
5 days ago
- Business
- Business Standard
LIC Q1 net profit rises 5% to nearly ₹11K cr due to tepid premium growth
State-owned Life Insurance Corporation (LIC) of India reported a modest 5 per cent year-on-year (Y-o-Y) growth in net profit at ₹10,986 crore in the first quarter of 2025-26 (Q1FY26) due to tepid growth in premiums. Its total premium income grew 4.77 per cent Y-o-Y in Q1FY26 to ₹1.19 trillion, with premiums in the individual segment growing 6.4 per cent Y-o-Y to ₹71, 474 crore, and group business premium growing tepidly by 2.5 per cent to ₹47,726 crore. Value of new business (VNB) of the insurer grew 21 per cent Y-o-Y in Q1FY26 to ₹1,944 crore. VNB margin, a measure of profitability of life insurers, of LIC in the quarter stood at 15.4 per cent, up 150 basis points (bps) from Q1FY25. The share of non-par products in LIC's portfolio has increased to 30 per cent in Q1FY26 as compared to 24 per cent in Q1FY25. However, the number of policies sold by the insurer declined 15 per cent to a little over 3 trillion in Q1FY26. LIC's assets under management (AUM) at the end of the quarter increased to ₹57 trillion, up 6 per cent from ₹53.5 trillion in Q1FY25. The expense of management (EoM) of the insurer dropped around 7.56 per cent from the year-ago period to ₹12,498.57 crore, as net commissions paid by the insurer dropped 2.76 per cent Y-o-Y to ₹4,949.57 crore. The EoM ratio of the company stood at 10.4 per cent as compared to 11.8 per cent in Q1FY25. In Q1FY26, LIC's persistency ratios for the 13th month and 61st month were 75.6 per cent and 63.85 per cent, respectively, on a premium basis. In the same period last year, 13th month and 61st month persistency of the insurer stood at 78.23 per cent and 61.62 per cent, respectively. 'Sometimes the policies lapse, but they are renewed a little later. In the long term, 61st month persistency has gone up. The effect of the interventions and modifications we made in the products is likely to come up after one year, which is a few months from now. So, whatever numbers we are seeing with regard to persistency are for those policies which were sold a year back. Going forward, within a few months from now, we will be able to see the result of the interventions as far as persistency is concerned,' LIC management said during their post-earnings media call. R Doraiswamy, managing director and chief executive officer (MD&CEO) of LIC, said: 'We normally find that policies with lower ticket size are the ones which tend to have a lower persistency. So, since the cohort of policies that is being measured for the current quarter belongs to the earlier regime of policies, the persistency of 13th month has come down a bit, though we will be taking all our efforts to… increase the persistency as the policy term goes ahead.' In terms of market share, measured by first-year premium income, LIC continues to be the market leader in Indian life insurance business, with overall share of 63.51 per cent. For Q1FY26, LIC had a market share of 38.76 per cent in individual business and 76.54 per cent in group business. Doraiswamy also said: 'Key elements of our strategy like increase in the non-par share in individual business, increase in VNB margin, increase in bancassurance share are fully on track… our channel mix diversification strategy is visible with the increased share of bancassurance and alternative channels.'
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Business Standard
5 days ago
- Business
- Business Standard
LIC net profit rises 5% in Q1FY26; VNB margin and non-par share up
State-owned Life Insurance Corporation (LIC) of India reported a 5 per cent year-on-year (Y-o-Y) growth in net profit to Rs 10,986 crore in the April–June quarter of FY26 (Q1FY26), due to tepid growth in premiums. Its total premium income grew 4.77 per cent Y-o-Y in Q1 to Rs 1.19 trillion, with premiums in the individual segment rising 6.4 per cent to Rs 71,474 crore, and group business premiums growing 2.5 per cent to Rs 47,726 crore. The value of new business (VNB) of the insurer rose 21 per cent Y-o-Y during this period to Rs 1,944 crore. LIC's VNB margin, a key profitability metric for life insurers, stood at 15.4 per cent in Q1, up 150 basis points from the corresponding period last year. The share of Non-Par products in LIC's portfolio increased to 30 per cent in Q1FY26, compared to 24 per cent in Q1FY25. However, the number of policies sold declined 15 per cent to a little over 3 trillion in Q1. LIC's assets under management (AUM) at the end of Q1 rose to Rs 57 trillion, up 6 per cent from Rs 53.5 trillion in the same period a year earlier. The insurer's expense of management (EoM) fell 7.56 per cent from the year-ago period to Rs 12,498.57 crore, as net commissions paid dropped 2.76 per cent Y-o-Y to Rs 4,949.57 crore. LIC's EoM ratio stood at 10.4 per cent, down from 11.8 per cent in Q1FY25. In Q1, LIC's persistency ratios for the 13th month and 61st month stood at 75.6 per cent and 63.85 per cent, respectively, on a premium basis. In the same period last year, these were 78.23 per cent and 61.62 per cent, respectively. 'Sometimes policies lapse but are renewed a little later. In the long term, 61st month persistency has gone up. The interventions and modifications we made in the products—the effect is likely to come up after one year, which is a few months from now. So, whatever numbers we are seeing with regard to persistency are for policies sold a year back. Going forward, we will be able to see the result of the interventions,' LIC management said during the post-earnings media call. R Doraiswamy, managing director and chief executive officer, LIC, said, 'We normally find that lower ticket-size policies tend to have lower persistency. Since the cohort of policies measured for the current quarter belongs to the earlier regime, the 13th month persistency has declined slightly. We are making all efforts to contact and revive these policies to improve persistency going forward.' In terms of market share—measured by First-Year Premium Income—LIC continues to lead the Indian life insurance sector, with an overall share of 63.51 per cent. For the quarter ended 30 June 2025, LIC had a market share of 38.76 per cent in the individual business and 76.54 per cent in the group business. Doraiswamy added, 'Key elements of our strategy—like increasing the Non-Par share in individual business, improving VNB margin, and boosting the banca share—are fully on track. Our channel mix diversification strategy is visible with the increased share of bancassurance and alternate channels.'
Irish Times
29-07-2025
- Business
- Irish Times
Dublin Airport ‘outperformed' financial forecasts since 2022, says watchdog
Dublin Airport has largely outperformed the aviation watchdog's financial expectations since 2022, but has undershot its capital expenditure forecasts due to planning delays, according to the Irish Aviation Authority (IAA). On Tuesday, the regulator opened a two-month public consultation that will inform its decision on the new maximum charge that airlines will have to pay to operate at Dublin Airport, which is operated by State-owned DAA . It comes in advance of the watchdog's decision, due next year, on the new maximum level of airport charges for the following four years, beginning on January 1st, 2027. Since the last determination was made in 2022, Dublin Airport has 'markedly outperformed' forecast commercial revenues, largely due to stronger-than-expected passenger growth, the IAA said. READ MORE The watchdog had forecast traffic to reach 31.7 million in 2023 and 33.6 million in 2024. However, some 33.5 million passengers travelled through Dublin Airport in 2023, followed by 34.6 million in 2024. [ DAA lands near €300m profit despite passenger cap limitations Opens in new window ] The IAA said it will have to consider what methodologies and data sources it uses to forecast future traffic in advance of the 2026 decision on airport charges. However, the watchdog said that Dublin Airport's capital expenditure has been 'well below' the forecast it made in 2022. This is due to certain 'capacity-enhancing and passenger experience-related projects' being 'held up in the planning process' as part of the airport's infrastructure application. It will be the first time that the IAA has made this determination after the Commission for Aviation Regulation, which previously had responsibility for the decision, was merged into the IAA in 2023. The watchdog said that the 'key objective' of the decision on a new maximum airport charge 'will be to promote and protect the interests of current and future airport users'.
The Hindu
23-07-2025
- Climate
- The Hindu
Heavy rains cripple coal production in SCCL's open cast mines
Coal mining operations in the open cast mines of the Singareni Collieries Company Limited (SCCL) in Ramagundam and Kothagudem areas were crippled following widespread rainfall in the coal belt for the second consecutive day on Wednesday. The overburden removal operations came to a virtual halt in all the four open cast mines in the RG-I, RG-II and RG-III Areas of the State-owned coal mining giant in Peddapalli district due to heavy overnight rain, sources said. The OCP-I in RG-III Area recorded 75 mm rainfall in the past 24 hours, ending at 8 a.m. on Wednesday. An estimated 30,000 tonnes of coal production was affected due to the rain-induced disruption in the OCPs in Peddapalli and Jayashankar Bhupalpalli districts, sources added. Open cast mines in Bhadradri Kothagudem district also suffered a major disruption in coal production due to incessant rains in the erstwhile Khammam district for the second day in a row. Sources added that overburden removal came to a grinding halt in the JVR OCP and Kistaram OCPs, severely impacting coal production.
West Australian
22-07-2025
- Business
- West Australian
Perth Mint: State Government's Gold Corporation gets Austrac's gold tick following money laundering scandal
Financial crimes watchdog Austrac has given Perth Mint a clean bill of health, while warning the State-owned gold trade business remained a high risk. Perth Mint — the trading name of taxpayer-owned Gold Corporation — was rocked by a series of scandals including allegations of gold doping, failures to comply with money-laundering rules and troubles with artisanal miners in Papua New Guinea. Gold Corporation was given an April 30 deadline to fix up the litany of failures identified through an enforceable undertaking signed with Austrac in late 2023. The regulator the following month received the final progress report from an external auditor, which specified how the company had completed its remediation in compliance with the EU. On Tuesday, AUSTRAC chief executive Brendan Thomas said it was satisfied Gold Corporation had met its obligations and released it from the enforceable undertaking. 'As a result of the EU, Gold Corporation has made an ongoing investment in its (anti-money laundering and counter-terrorism financing) systems and controls and have made a commitment to undertake continuous review and improvement,' he said. 'Gold Corporation's previous AML/CTF program had serious failings, including failures to accurately identify the risks posed by its customers, ineffective monitoring of customer transactions, and failures to make certain reports to Austrac' Mr Thomas added compliance with anti-money laundering and counter-terrorism financing laws 'should be a given'. 'I acknowledge Gold Corporation's cooperation and transparency during the EU process, though I would much prefer all businesses met their compliance obligations and we didn't need to take this kind of intensive action,' he said. 'Trading in gold still carries significant money laundering risks and we expect Gold Corporation to stay on top of its risk environment and take steps to update its program whenever required, including reporting suspicious transactions to AUSTRAC.' Perth Mint has been contacted for comment. More to come.
