LIC Q3 PAT rises 17% YoY to Rs 11,056 cr

Life Insurance Corporation of India (LIC) reported 17.1% jump in standalone net profit to Rs 11,056.47 crore in Q3 FY25 as compared with Rs 9,444.42 crore in Q3 FY24.

Net premium fell 8.7% to Rs 1,06,891.48 crore in Q3 FY25 as compared with Rs 1,17,016.93 crore in Q3 FY24.

Profit before tax (PBT) increased 17.8% YoY to Rs 12,751.25 crore during the quarter.

The assets under management (AUM) increased to Rs 54,77,651 crore as on 31st December 2024 as compared to Rs 49,66,371 crore on 31st December 2023 registering an increase of 10.29% year on year.

The solvency ratio as on December 31st, 2024 increased to 2.02 as against 1.93 on December 31st, 2023.

On nine months basis, the companys standalone net profit increased 7.9% to Rs 29,138.38 crore in Q3 FY25 as compared with Rs 26,913.14 crore in 9M FY24. Net premium increased 5.51% YoY to Rs 3,40,562.61 crore in 9M FY25.

On an annualized premium equivalent (APE) basis, the total premium was Rs 37,975 crore for the nine months period ended December 31st, 2024. Of this 64.81% (Rs 24,612 crore) was accounted for by the Individual Business and 35.19% (Rs 13,363 crore) by the Group Business.

The value of new business (VNB) for the nine months period ended December 31st, 2024 was Rs 6,477 crore as compared to Rs 5,938 crore for the nine months period ended December 31st, 2023, registering a growth of 9.08%.

Staterun life insurer sold 1,17,10,505 policies during the nine months period ended 31st December 2024, registering the de-growth of 6.73% as compared to 1,25,56,046 policies sold during the nine months period ended 31st December 2023.

For the nine months period ended December 31st, 2024, the persistency ratios on premium basis for the 13th month and 61st month were 76.66% and 61.84%, respectively. The comparable persistency ratios for the corresponding period ended December 31st, 2023 were 78% and 62.40%, respectively

For the nine months period ended December 31st, 2024, the persistency ratios on number of policies basis for the 13th month and 61st month were 66.47% and 49.22%, respectively. The comparable persistency ratios for the corresponding period ended December 31st , 2023 were 67.22% and 50.23%, respectively.

The overall expense ratio for the nine months period ended December 31st, 2024 decreased by 231 bps to 12.97% as compared to 15.28% for the nine months period ended December 31st 2023.

In terms of market share measured by first year premium income (FYPI) (as per IRDAI), LIC continues to be the market leader in Indian life insurance business with overall market share of 57.42% for nine months ended December 31st 2024 as compared to 58.90% for nine months ended December 31st 2023.

Siddhartha Mohanty, CEO & MD, LIC said, Our focus and strategy remains consistent towards changing our product and channel mix to serve the needs of our customers, in a dynamic environment. For the nine months period ended December 31st 2024, the Non Par share within the individual business increased to 27.68%, on an APE basis, as compared to 14.04% for the same period last year.Further, the VNB margin has also improved to 17.1% for the nine months period ended December 31st 2024, as compared to 16.6% for the same period last year.

LICs Bima Sakhi Yojana, for empowerment of women by offering them career in insurance sales as an agent, was launched by Honble Prime Minister on 9th December 2024. Till date more than 1.25 lakh women have been registered and more than 70,000 have been appointed as Bima Sakhis. In coming months, the outcomes of our digital transformation initiatives will be visible. We remain thankful to all our stakeholders for their support as we adapt, reimagine and realign our business to a fast changing industry scenario.

Meanwhile, the companys executive committee has renewed the term of Sunil Agrawal as the chief financial officer (CFO) for one year, i.e., upto 1 March 2026.

LIC has been providing life insurance in India for more than 65 years and is the largest life insurer in the country.

The scrip declined 1.56% to end at Rs 815.95 on Friday, 8 February 2025.

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