LIC Profit Surges On $1.8 Bn Boost To Shareholders' Fund

Life Insurance Corporation of India posted a more than 11-fold jump in second-quarter profit on Friday, as the country's largest insurer moved Rs 142.72 billion to its shareholders' fund to shore up its net worth.

Profit after tax surged to Rs 159.52 billion ($1.98 billion) for the three months ended September 30, from Rs 14.34 billion a year earlier.

LIC said it transferred Rs 142.72 billion from its non-participating fund to the shareholders' fund.

Reuters reported last month that the insurer was planning to transfer nearly $22 billion from policyholders' funds into a fund earmarked to pay dividends or issue bonus shares. read more

LIC's other income also surged after the insurer recognised a gain of 66.27 billion rupees as interest on a refund of income tax for earlier financial years.

Net premium income rose more than 26 per cent to Rs 1.32 trillion, the company said in an exchange filing.

LIC, which listed in May following a record $2.7 billion share sale, has seen its stock tumble over 28% from the listing price of 872 rupees.

(Reuters)