LIC Q1 FY25 results: Net profit increases 9.6% to Rs 10,461 crore

State-owned Life Insurance Corporation of India has reported a 9.6% YoY rise in its net profit to Rs 10,461 crore in the quarter ending June 2024.

The PSU insurance company has reported a premium income of Rs 1.13 trillion in Q1FY25, up 15.66% Y-o-Y compared to the corresponding period a year ago, with individual premiums growing by 7.04% Y-o-Y to Rs 67,192 crore, and group premiums growing by 30.87% Y-o-Y to Rs 46,578 crore.

Its value of the new business (VNB) premium stood at Rs 1,610 crore in Q1FY25, up 23.66% Y-o-Y from the year-ago period, and its VNB margin – a measure of the profitability of life insurance companies – stood at 13.90%.

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 On an annualized premium equivalent (APE) basis, within individual businesses, LIC’s non-par product has increased to 23.94% in Q1FY25 compared to 10.22% in the corresponding period a year ago.

“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,” said Siddhartha Mohanty, MD&CEO, LIC.

Its net income from investments increased 6.35% Y-o-Y to Rs 96,534.8 crore in Q1FY25. And, its Assets Under Management (AUM) stood at Rs 53.59 trillion, up 16.22% Y-o-Y from the year-ago period. LIC’s yield on investments on policyholders’ funds, excluding unrealized gains, was 8.54% for Q1FY25.

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LIC’s APE has grown by 21.3% Y-o-Y to Rs 11,560 crore in Q1FY25. LIC has booked a profit of Rs 15,500 crore in Q1FY25 from its equity investments.

The state-owned insurer has invested around Rs 38,800 crore in the equity markets in Q1 and plans to make at least around the same amount it had invested in FY23 – Rs 1.32 trillion – in the equity market in FY25, if not more. LIC’s market value of equity investment stands at Rs 15 trillion, the management said.

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