India's LIC profit surges on $1.8 billion boost to shareholders' fund

Life Insurance Corporation of India (LIC) IPO listing in Mumbai

BENGALURU (Reuters) -Life Insurance Corporation of India posted a more than 11-fold jump in second-quarter profit on Friday, as the country's largest insurer moved 142.72 billion rupees to its shareholders' fund to shore up its net worth.

Profit after tax surged to 159.52 billion Indian rupees ($1.98 billion) for the three months ended Sept. 30, from 14.34 billion rupees a year earlier.

LIC said it transferred 142.72 billion rupees from its non-participating fund to shareholders' fund.

Reuters reported last month that the insurer was planning to transfer nearly $22 billion from policy holders' funds into a fund earmarked to pay dividends or issue bonus shares.

LIC's other income also surged after the insurer recognised a gain of 66.27 billion rupees as interest on refund of income tax for earlier financial years.

Net premium income rose more than 26% to 1.32 trillion rupees, the company said in an exchange filing.

LIC, which listed in May following a record $2.7 billion share sale, has seen its stock tumble over 28% from the listing price of 872 rupees.

(Reporting by Nandan Mandayam, Nishit Navin and Chris Thomas in Bengaluru; Editing by Sriraj Kalluvila)