LIC PAT climbs 9% YoY to Rs 10,461 crore in Q1 FY25

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 64.02%. For nine months ended 30 June 2024, LIC had a market share of 39.27% in Individual business and 76.59% in the Group business.

On an Annualized Premium Equivalent (APE) basis, the total premium was Rs 11,560 crore for the quarter ended 30 June 2024. Of this 58.37% (Rs 6,747 crore) was accounted for by the Individual Business and 41.63% (Rs 4,813 crore) by the Group Business.

Within the individual business the share of par products on APE basis was 76.06% (Rs 5,132 crore) and balance 23.94% (Rs 1,615 crore) was due to non par products. The non-par APE has increased from Rs 608 crore for the June 2024 quarter to Rs 1,615 crore for the June 2023 quarter, registering a growth of 165.63%. Therefore, our non par share of Individual APE which was 10.22% for the quarter ended 30 June 2023 has grown to 23.94% for the quarter ended 30 June 2024.

The insurance behemoth sold 35.65 lakh policies in the individual segment during the quarter, registering a growth of 10.86% on YoY basis.

For Q1 FY25, the persistency ratios on premium basis for the 13th month and 61st month were 78.23% and 61.62%, respectively. The comparable persistency ratios for the corresponding quarter ended June 30th, 2023 were 78.37% and 62.73%, respectively.

For first quarter of FY25, the persistency ratios on number of policies basis for the 13th month and 61st month were 67.81% and 49.39%, respectively. The comparable persistency ratios for the corresponding period ended June 30th, 2023 were 66.15% and 50.79%, respectively.

LIC's assets under management (AUM) increased to Rs 53.58 lakh crore as on June 2024 as compared to Rs 46.11 crore on June 2023, registering a growth of 16.22% year on year.

The yield on investments on policyholders funds excluding unrealized gains was 8.54% for Q1 FY25 as against 8.78% Q1 FY24.

The Solvency Ratio as on 30 June 2024 improved to 1.99 as against 1.89 on 30 June 2023.

The value of new business (VNB) for the quarter ended 30 June 2024 was Rs 1,610 crore, up 8.40% as compared to Rs 1,302 crore for the quarter ended 30 June 2023. The net VNB margin for Q1 FY24 was 13.9% as compared to 13.7% recorded in Q1 FY23.

Siddhartha Mohanty, CEO & MD, LIC, said, “During the first quarter of this financial year, our market share increased to 64.02% as compared to 61.42% for the same quarter of previous year and 58.87% for the full year ended March 31, 2024. LIC is progressing on its stated objective of gaining market share after having focused, during the last year, on consolidating changes in product mix, channel mix and margin improvement.

While achieving these growth parameters our margin is stable and our expenses ratio has declined by 98 bps to 11.87% in this quarter. As leader of the insurance industry in India we are conscious of our responsibility to deliver enhanced insurance penetration and we look forward to working with the regulatory authorities to achieve the same. We are committed to further optimizing our product and channel mix and improvement of margins. With the digital transformation exercise underway we intend to create a seamless experience for our customers and partners.”

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 rose 0.92% to Rs 1,136.05 on the BSE.