Profit surge Is LIC setting a new record

Shares of Life Insurance Corporation of India rose as much as 5% on May 22 after the company reported a strong 23% jump in fourth quarter profit. The rise was driven by robust group business growth and continued benefits from last year’s goods and services tax cuts. Analysts had already expected a solid quarter, supported by tax reforms that boosted insurance demand in India, even as geopolitical tensions in the Middle East impacted sentiment and weighed on market linked policy sales.

The state owned insurer reported a net profit of ₹23,420 crore for the quarter ended March 31, compared to ₹19,013 crore a year earlier. Net premium income increased 11.5% to ₹1.65 lakh crore. Single premium collections rose 21.5%, while first year premiums from new policies grew around 17%. JM Financial also raised its target price following the strong results.