Life Insurance Corporation of India (LIC) shares skyrocketed over 4% in early trade on Friday after the country’s largest life insurance firm posted a bumper profit in the first quarter.

What The Numbers Look Like: The insurer posted a 1,299% surge in net profit, reaching ₹9,543 crore for the quarter ended June. This impressive growth was attributed to higher income from investments.

LIC’s income from investments also saw a significant increase, rising to ₹90,309 crore in the quarter from ₹69,570 crore in the previous year.

The gross non-performing asset (GNPA) ratio for June 30 stood at 2.48%, which is a substantial improvement from the 5.84% reported last year. Notably, the net non-performing asset (NPA) remained unchanged at nil, consistent with the preceding year.

During the quarter, the company sold a total of 32.16 lakh policies in the individual segment, as compared to 36.81 policies sold a year ago. Siddhartha Mohanty, managing director and CEO of LIC, attributed this decrease in policy numbers to changes in the ticket size model. However, he expressed optimism that policy numbers would rebound in the coming quarters as the company adjusts its models for profitability.

Not Everything Is Rosy: Despite the positive growth, LIC’s first-year premium, an indicator of business expansion, declined by 8.3% to ₹6,810 crore for the quarter from ₹7,429 booked last year. The net premium income remained nearly flat at ₹98,362 crore.

The company also saw a substantial reduction in the transfer of funds from shareholders’ accounts, which fell from ₹799 crore to ₹1.48 crore.

Price Action: LIC’s share price skyrocketed 3.40% to trade at ₹663.50 early on Friday.

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