LIC shares: The state-owned insurer reported a 38% year-on-year increase in consolidated net profit, reaching ₹19,039 crore for the March quarter.
Shares of Life Insurance Corporation (LIC) are set to be in focus on Wednesday after the state-insurer posted a 38% year-on-year (YoY) jump in consolidated net profit to Rs 19,039 crore for the March quarter and announced a final dividend of Rs 12 per share for FY25, underlining its improved profitability and capital strength.
On a sequential basis, LIC's profit rose 73% from Rs 11,009 crore in the December quarter. The state-run insurer also posted an 18% rise in full-year profit and saw improvements in key financial metrics such as assets under management and solvency ratio.
The insurer’s net premium income for the quarter fell 3.2% YoY to Rs 1,47,917 crore, down from Rs 1,52,767 crore a year ago, but rose 38% sequentially from Rs 1,07,302 crore in Q3FY25.
FY25 earnings improve
For the full year ended March 31, 2025, LIC reported a consolidated profit after tax of Rs 48,151 crore, up 18% YoY. The insurer’s total premium income rose to Rs 4,88,148 crore from Rs 4,75,070 crore in FY24. The individual business premium climbed to Rs 3,19,036 crore, while the group business premium slightly declined to Rs 1,69,112 crore.
LIC sold 1.77 crore policies in the individual segment during FY25, lower than the 2.03 crore policies sold in the previous year. The insurer’s assets under management (AUM) increased by 6.45% to Rs 54,52,297 crore, while the solvency ratio improved to 2.11 from 1.98.
On an Annualized Premium Equivalent (APE) basis, the total premium stood at Rs 56,828 crore, with 67.25% of it coming from the individual business. Within this, participating (Par) products made up 72.31% while non-participating (Non Par) products accounted for 27.69%. The Non Par APE grew sharply by 50.28% year-on-year to Rs 10,581 crore.
Siddhartha Mohanty, CEO & MD of LIC, said FY25 was both "exciting and challenging" for the company. “After registering a very strong performance in the first six months, we had to redesign and relaunch products to comply with regulatory changes,” he said.
“We have achieved Individual New Business Premium of Rs 62,495 crore, in a single year. Second, our Net VNB for the year is Rs 10,011 crore, i.e. over Rs 10,000 crore for the first time. Third, our VNB margin is steadily on the rise, reaching 17.6% as at 31st March 2025. Fourth, our strategy to increase Non Par share is further getting consolidated. This year, Non Par APE share within the individual business has risen to 27.69%. Finally, we are proud to say that we have declared bonus of Rs 56,190.24 crore to policyholders. We are thankful to all our stakeholders for their support and faith in us,” Mohanty added.
Shares of LIC closed 0.1% higher at Rs 871.05 on the BSE on Tuesday.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
On a sequential basis, LIC's profit rose 73% from Rs 11,009 crore in the December quarter. The state-run insurer also posted an 18% rise in full-year profit and saw improvements in key financial metrics such as assets under management and solvency ratio.
The insurer’s net premium income for the quarter fell 3.2% YoY to Rs 1,47,917 crore, down from Rs 1,52,767 crore a year ago, but rose 38% sequentially from Rs 1,07,302 crore in Q3FY25.
FY25 earnings improve
For the full year ended March 31, 2025, LIC reported a consolidated profit after tax of Rs 48,151 crore, up 18% YoY. The insurer’s total premium income rose to Rs 4,88,148 crore from Rs 4,75,070 crore in FY24. The individual business premium climbed to Rs 3,19,036 crore, while the group business premium slightly declined to Rs 1,69,112 crore.
LIC sold 1.77 crore policies in the individual segment during FY25, lower than the 2.03 crore policies sold in the previous year. The insurer’s assets under management (AUM) increased by 6.45% to Rs 54,52,297 crore, while the solvency ratio improved to 2.11 from 1.98.
On an Annualized Premium Equivalent (APE) basis, the total premium stood at Rs 56,828 crore, with 67.25% of it coming from the individual business. Within this, participating (Par) products made up 72.31% while non-participating (Non Par) products accounted for 27.69%. The Non Par APE grew sharply by 50.28% year-on-year to Rs 10,581 crore.
Siddhartha Mohanty, CEO & MD of LIC, said FY25 was both "exciting and challenging" for the company. “After registering a very strong performance in the first six months, we had to redesign and relaunch products to comply with regulatory changes,” he said.
“We have achieved Individual New Business Premium of Rs 62,495 crore, in a single year. Second, our Net VNB for the year is Rs 10,011 crore, i.e. over Rs 10,000 crore for the first time. Third, our VNB margin is steadily on the rise, reaching 17.6% as at 31st March 2025. Fourth, our strategy to increase Non Par share is further getting consolidated. This year, Non Par APE share within the individual business has risen to 27.69%. Finally, we are proud to say that we have declared bonus of Rs 56,190.24 crore to policyholders. We are thankful to all our stakeholders for their support and faith in us,” Mohanty added.
Shares of LIC closed 0.1% higher at Rs 871.05 on the BSE on Tuesday.
Also read | Is the recent dip in Indian indices simply a bull market correction?
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
