LIC Q3 Results: Profit Rises 16%, Net Premium Income Falls
The country's largest insurer posted a profit of Rs 11,008.7 crore in the quarter ended December.
Life Insurance Corp.'s consolidated net profit rose 16% in the third quarter of the current financial year.
The country's largest insurer posted a profit of Rs 11,008.7 crore in the quarter ended December, according to an exchange filing on Friday.
LIC Q3 FY25 Highlights (Consolidated, YoY)
Net premium income down 8.62% to Rs 1.07 lakh crore versus Rs 1.17 lakh crore.
Net profit up 16% to Rs 11,008.7 crore versus Rs 9,469 crore.
Total APE down 24% to Rs 9,950 crore versus Rs 13,162 crore.
Value of New Business down 27% to Rs 1,926 crore versus Rs 2,634 crore.
VNB margin up 150 basis points to 19.36% vs 17.9% (QoQ)
Performance Update for 9M FY25
Profit after tax increased by 8.27% to Rs. 29,138 crore
Individual Business Non Par APE increased by 106.52% to Rs 6,813 crore
Non Par APE share within Individual business at 27.68% vs 14.04%
Value of New Business increased by 9.08% to Rs 6,477 crore
VNB Margin increased by 50 bps to 17.1%
New Business Premium Income (Individual) increased by 9.73% to Rs. 42,441 crore
Total Premium Income increased by 5.51% to Rs. 3,40,563 crore
Asset under Management increased by 10.29% to Rs 54,77,651 crore
Overall APE increases by 6.11% to Rs. 37,975 crore
Individual Business APE increased by 4.72% to 24,612 crore and Group Business APE increased by 8.76% to Rs. 13,363 crore
Solvency Ratio increased to 2.02 from 1.93
Expense ratio reduced by 231 bps to 12.97% vs 15.28%
Key Highlights
In terms First Year Premium Income the insurer continues to be the market leader in Indian life insurance business with overall market share of 57.42% for 9MFY25 vs 58.90% 9MFY24.
On an APE basis, the total premium was Rs. 37,975 crore for the 9M FY24. 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. Within the Individual Business, the share of Par products on APE basis was 72.32% (Rs. 17,799 crore) and balance 27.68% (Rs. 6,813 crore) was due to Non Par products.
“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" said by Shri Siddhartha Mohanty, CEO & MD.
