Life Insurance Corporation of India (LIC), the country’s largest insurance company on Thursday reported over 40 times on-year growth in consolidated net profit to Rs 8,349 crore in the fiscal third quarter of FY23, up from Rs 211 crore in the same quarter last year. LIC’s top management said that they will soon call the Adani group’s top management to understand issues surrounding the conglomerate and how they are planning to work around the situation.
“We will call the top management to understand the issue and future plans for the situation,” said M R Kumar, Chairman, LIC. The country’s largest insurance company’s net premium income rose 15% to Rs 1.12 lakh crore in Q3 from Rs 98,052 crore in the year-ago period. The shares of the company closed 0.53% higher at Rs 613.35, ahead of the Q3 results announcement.
“The investment dept has reached out to Adani Group, but can’t share a timeline of the meeting with mgmt; Not reduced any exposure in Adani Group,” LIC’s top management said.
Adani Group has been engulfed in crisis since US-based short-seller Hindenburg Research accused the Adani family of money laundering and stock manipulation. The report raised concerns over the extremely high levels of debt and valuations of the companies. Hindenburg said that it has taken short positions in Adani’s U.S.-traded bonds and non-Indian traded derivatives. According to reports, LIC has invested more than $4 billion in the Adani group.
LIC’s first-year premium or new business premium grew to Rs 9,724.71 crore in the December quarter from Rs 8,748.55 crore in the corresponding quarter of the previous fiscal. The net income from investments jumped 11% YoY to Rs 84,889 crore from Rs 76,574 crore in the year-ago period. The shares of the company closed 0.53% higher at Rs 613.35, ahead of the Q3 results announcement.
