LIC PAT slides 4% YoY to Rs 7,621 crore in Q2 FY25

The state-run life insurer's standalone net profit declined 3.84% to Rs 7,620.86 crore despite of 11.64% increase in total premium income to Rs 1,19,900.99 crore in Q2 FY25 over Q2 FY24.

On half yearly basis, the life insurers net profit increased 3.51% to Rs 18,081.91 crore on 13.57% rise in net premium income to Rs 2,33,671.13 crore in H1 FY25 over H1 FY24.

In terms of market share measured by First Year Premium Income (FYPI) (as per IRDAI), LIC continued to be the market leader by market share in Indian life insurance business with overall market share of 61.07%. For half year ended 30 September 2024, LIC had a market share of 39.79% in Individual business and 74.77% in the Group business.

 

On an Annualized Premium Equivalent (APE) basis, the total premium was Rs 28,025 crore for the quarter ended 30 September 2024. Of this 64.81% (Rs 18,163 crore) was accounted for by the Individual Business and 35.19% (Rs 9,862 crore) by the Group Business.

Within the individual business the share of par products on APE basis was 73.69% (Rs 13,385 crore) and balance 26.31% (Rs 4,778 crore) was due to non par products. The individual non-par APE has increased to Rs 4,778 crore for H1 FY25 from Rs 1,575 crore for H1 FY24, registering a growth of 203.37%. Therefore on APE basis, the non-par share of individual business has increased to 26.31% for the six months period ended 30 September 2024, as compared to 10.76% in same period last year.

The insurance behemoth sold 91.70 lakh policies in the individual segment during six months ended September 2024, registering a growth of 13.77% on YoY basis.

For H1 FY25, the persistency ratios on premium basis for the 13th month and 61st month were 77.62% and 61.46%, respectively. The comparable persistency ratios for the corresponding period ended September 2024 were 78.49% and 62.53%, respectively.

For first half of FY25, the persistency ratios on number of policies basis for the 13th month and 61st month were 67.23% and 48.92%, respectively. The comparable persistency ratios for the corresponding period ended September 30th, 2024 were 66.80% and 50.35%, respectively.

LIC's assets under management (AUM) increased to Rs 55.39 lakh crore as on September 2024 as compared to Rs 47.43 crore as on September 2023, registering a growth of 16.78% YoY.

The yield on investments on policyholders funds excluding unrealized gains was 9.02% for H1 FY25 as against 9.06% H1 FY24.

The solvency ratio as on 30 September 2024 improved to 1.98 as against 1.90 on 30 September 2023.

The value of new business (VNB) for the six months ended 30 September 2024 was Rs 4,551 crore, up 24.01% from Rs 3,304 crore in corresponding period previous fiscal. The net VNB margin for H1 FY25 was 16.2% as compared to 14.6% recorded in H1 FY24.

Siddhartha Mohanty, CEO & MD, LIC, said, During the first half of this year (FY 2024-25), LIC has been successful in delivering holistic growth on various business parameters such as market share, premium, Non par share within Individual business, VNB, VNB Margin and Embedded Value. Further, we have been consolidating our gains in terms of changing our product mix. Our strategy on enhancing market share alongwith changes in product and channel mix, without compromising on profitability, is yielding very visible results.

Further, we have aligned our products with the new regulatory guidelines by redesigning them in such a manner that the interest of customers, shareholders and various marketing channel partners are taken care of. We are committed to continue to play a significant role in the further development of the life insurance market with the support of all our stakeholders.

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

Shares of Life Insurance Corporation of India declined 1.62% to Rs 914.75 on Friday, 8 November 2024.

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