Life Insurance Corporation of India’s (LIC) net profit for the fourth quarter of FY2024 was capped at ₹13,762 crore due to the impact of wage revisions. This result marks a significant increase compared to the ₹2,409 crore net profit reported in the same period last year. However, the wage revision impact has tempered the overall profitability growth.
Source:- BBC news
The wage revision, which is a part of the periodic salary adjustments for employees, led to increased expenses for the insurer, thus affecting the net profit margins. Despite this, LIC managed to sustain strong performance due to robust premium collections and investment income. The company reported a considerable rise in its gross written premium, which reflects the continued trust of policyholders in LIC’s offerings.
Source:- india today
Additionally, LIC’s investment portfolio performed well, contributing positively to the financial results. The insurer’s ability to manage its extensive investment assets effectively played a crucial role in mitigating the impact of the increased wage expenses.
Overall, while the wage revision has had a dampening effect on the net profit for this quarter, LIC’s underlying business fundamentals remain strong, supported by steady premium growth and solid investment returns.
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