New Delhi, Aug. 6 -- Life Insurance Corp. of India Ltd (LIC) delivered stronger profitability in the June quarter, but the country's largest insurer warned that shrinking household disposable incomes continue to weigh on premium growth.

"We depend on the disposable income of the customers, and when that income gets impacted, there will be an impact certainly on the way people save," chief executive and managing director R. Doraiswamy said at a post-earnings briefing on Thursday.

He said the impact was already visible in LIC's growth numbers, with businesses linked to interest rates and financial markets, including unit-linked plans and annuities, remaining the most exposed to the fallout from the West Asia conflict.

"Though the numbers...