Life Insurance Corp.'s profit after tax declined by 50% year-on-year in the second quarter of fiscal 2024, coming in at Rs 7,925 crore.
Net premium income, on a standalone basis, for India's largest insurer came in at Rs 1.07 lakh crore, declining 19% over the same period last year.
Expenses of management, on a standalone basis, fell by 23%. The expenses of management ratio is at 17.2% vs 18.3%, as compared with the same period last year.
The 13th month persistency ratio for the insurer came in at 71.2% vs 70.5% YoY. The 61st month persistency declined to 55.2% from 55.8%.
LIC Q2 FY24 And H1 FY24 Highlights (Year-on-Year)
The value of new business on a net basis was at Rs 2,005 crore, as against Rs 2,280 crore, down 12% YoY.
Net VNB margin stood at 15.3%, as against 15.2% in Q2 FY23 and 13.7% in Q1 FY24.
Net VNB margin for H1 FY24 stood at 14.6%, flat YoY.
Total premium income for H1 FY24 saw a fall in growth of nearly 11% YoY.
The 13th month persistency ratio for H1 FY24 stood at 78.5%, against 77.6% over the same period last year. The 61st month persistency for H1 FY24 fell to 62.5% versus 62.8% for the corresponding period last year.
The overall expense ratio for H1 FY24 stood at 15.1%, against the 16.7% number in H1 FY23.
New business premium income rose 2.6% YoY.
Annualised premium equivalent fell 12.5% for the quarter, against the corresponding quarter of last year and came in at Rs 13,095 crore. APE fell 10% YoY in H1 FY24.
Assets under management for the insurer rose 10.5% YoY to Rs 47.4 lakh crore as compared with H1 FY23.
Solvency ratio stood at 188% vs 190% at the end of H1 FY24.
LIC’s market share measured by first-year premium income fell from 61.42% in June 2023 to 58.5% at the end of September 2023.
“During the first six months of this financial year, we have been able to implement strategies successfully to enhance the share of non-par products in our overall individual business. The current VNB margins are an indicator of our initiatives delivering the objective of maintaining profitability as we change direction," said Siddhartha Mohanty, chairperson of LIC, in the exchange filing.
“We are conscious of the market dynamics in certain parts of our business and are working towards profit-oriented consolidation. The distribution mix is also more diversified with increase in share of Bancassurance and alternate channels,” he said.
RECOMMENDED FOR YOU
 11_07_24 .jpg?rect=0%2C0%2C3500%2C1969&w=75)
ICICI Lombard Q1 Results: Profit Rises 29% To Nearly Rs 750 Crore
Jul 15, 2025
LIC Share Price Gains After Mixed Q4 Results
May 28, 2025
LIC Q4 Results Review: Improved Solvency, Strong Valuation Support, Says Macquarie
May 28, 2025
LIC Q4 Results: Profit Rises 38%, Net Premium Income Falls
May 27, 2025
POPULAR