Chairman Kumar says LIC will soon contact Adani's top management to understand issue

The Life Insurance Corporation (LIC) has said that it will shortly contact the Adani group's top management in order to learn more about the concerns surrounding the conglomerate and how they intend to circumvent the situation.

After reporting its third quarter results, LIC Chairman M.R. Kumar was quoted as telling Moneycontrol, "We will call the top management to examine the reasons and future strategies for this situation." He noted that LIC's investment section had already reached out to the group.

After reporting its findings during a press conference, the state-owned insurance giant stated that its exposure to the Adani group is 0.97 percent of its total assets under management (AUM). As of December 31, 2022, LIC's total AUM was 44,34 trillion rupees.

CNBCTV18 quoted Kumar as saying that LIC hadn't been able to make a call to the Adani management so far. It reported the LIC chairman as saying that he wanted to business profits and strategies from Adani.

On Thursday, LIC announced a net profit of Rs 6,334,19 crore for the December quarter of the fiscal year 2022-23 (Q3FY23), a multi-fold rise year-over-year due to robust growth. The net profit for the same quarter of the prior year was Rs 234.91 billion. On a sequential basis, however, the life insurer's net profit has declined significantly. Its net profit for the September quarter was Rs 15,952.49 crore.

While net premium income increased by 14.5 percent to Rs 1.11 lakh crore from Rs 97,620 crore in the same quarter last year, first-year premium or new business premium increased to Rs 9,724.71 crore from Rs 8,748.55 crore in the same quarter last year.