LIC Q2 profit declines, Net premium income increased

State-owned Life Insurance Corp (LIC) has reported a 4% decline in its standalone net profit at Rs 7,621 crore for the quarter ended September 2024 as against Rs 7,925 crore in the previous year quarter.

Net premium income during the reporting quarter increased 11% year-on-year (YoY) to Rs 1.19 lakh crore, compared with Rs 1.07 lakh crore in the same quarter last year.

Income from investments during the second quarter rose 16% YoY to Rs 1.08 lakh crore in the September quarter, compared with Rs 93,942 crore in the same quarter last year.
 

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The first-year premium income during the second quarter increased 12% YoY to Rs 11,201 crore, compared with Rs 9,988 crore in the same quarter of the previous year.

Individual new business premium income for the six-month period ending September 2024 was Rs 29,538 crore, up from Rs 25,184 crore in the same period of the previous year, reflecting a growth of 17% YoY. Individual renewal premium income for the first half rose 5% YoY to Rs 1.15 lakh crore.

On the basis of Annualised Premium Equivalent (APE), the total premium was Rs 28,025 crore in H1FY25. Of this, nearly 65% (Rs 18,163 crore) was accounted for by the individual business, and 35% (Rs 9,862 crore) by the group business.

Within the individual business, the share of Par products on an APE basis was 73.69% (Rs 13,385 crore), and the balance of 26.31% (Rs 4,778 crore) was from non-par products.

The individual non-par APE increased to Rs 4,778 crore in the first half of the current fiscal, up by over 200% YoY.

The Value of New Business (VNB) for the six months rose 38% YoY to Rs 4,551 crore, with the net VNB margin rising by 160 bps to 16.2%.

The Indian Embedded Value (IEV) for LIC was determined to be Rs 8.21 lakh crore at the end of the second quarter, reflecting a 24% increase YoY."

 Assets under management (AUM) rose 17% YoY to Rs 55.39 lakh crore as of September 2024. The overall expense ratio for the first half rose 240 bps to 12.74%.

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The solvency ratio increased to 1.98 as of September 2024, while the 13th-month and 61st-month persistence ratios stood at 77.62% and 61.46%, respectively.

For the six-month period ending September 2024, the persistence ratios (on the number of policies basis) for the 13th and 61st months were 67.23% and 48.92%, respectively.

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