Earnings Review
LIC Oct-Dec PAT up 17% as commissions, employee costs fall
This story was originally published at 20:28 IST on 7 February 2025
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--LIC Oct-Dec net profit INR 110.56 bln vs INR 94.44 bln year ago
--LIC Oct-Dec net premium income INR 1.07 tln vs INR 1.17 tln year ago
--LIC solvency ratio at 2.02 times as on Dec 31 vs 1.93 times year ago
--LIC Oct-Dec 1st year premiums INR 72.85 bln vs INR 84.29 bln year ago
--LIC Apr-Dec net profit INR 291.38 bln vs INR 269.13 bln year ago
--LIC Apr-Dec net premium income INR 3.41 tln vs INR 3.23 tln year ago
--LIC 13th mo persistency 68.61% on Dec 31 vs 68.17% qtr ago, 70.89% yr ago
--LIC 61st mo persistency 59.69% on Dec 31 vs 54.76% qtr ago, 56.16% yr ago
--LIC assets under management at INR 54.78 tln as on Dec 31, up 10.3% YoY
--LIC: Apr-Dec VNB margin 17.1% vs 16.6% year ago
--LIC: Apr-Dec value of new business INR 64.77 bln, up 9.1% YoY
--LIC: Apr-Dec annual premium equivalent INR 379.75 bln, up 6.1% YoY
--LIC renews term of Sunil Agrawal as CFO till Mar 1, 2026
MUMBAI – A fall in commissions and employee costs pushed up Life Insurance Corp. of India Ltd.'s net profit by 17% year-on-year in Oct-Dec to INR 110.56 billion. The insurer saw its net commissions decrease 9% to INR 59.66 billion in Oct-Dec, while employee remuneration and welfare expenses fell 30% to INR 66.91 billion.
For the nine months ended December, the life insurance company's net profit was INR 291.38 billion, up 8% from last year. Net premium income in Oct-Dec fell 9% to INR 1.07 trillion, but was up 6% in Apr-Dec at INR 3.41 trillion.
LIC had reportedly cut agent commissions in October after the Insurance Regulatory and Development Authority of India's revised surrender value norms came into effect at the start of the month. The insurer announced its financial results post market hours on Friday after its shares ended 1.5% lower at INR 816.10 on the National Stock Exchange.
In Oct-Dec, LIC's first-year premium was down 14% on year at INR 72.85 billion, while renewal premium was up 3% at INR 645.86 billion. Single-premium declined 24% on year to INR 351.45 billion. The 13th month persistency ratio rose to 68.61% as on Dec. 31 from 68.17% as at the end of September, although it was down from 70.89% a year ago. The 61st month persistency ratio, meanwhile, rose sharply to 59.69% from 54.76% a quarter ago and 56.16% a year ago.
LIC's assets under management increased 10% on year to INR 54.78 trillion as on Dec. 31. The solvency ratio of the country's largest life insurer was 2.02 times as on Dec. 31, up from 1.93 times a year ago.
The company's overall annualised premium equivalent in Apr-Dec was 6% higher at INR 379.75 billion. The value of new business was INR 64.77 billion for the first nine months of 2024-25 (Apr-Mar), showing a 9% rise, while the net value of new business margin rose to 17.1% from 16.6% in the same period last year.
LIC also said on Friday that its executive committee had renewed the term of Sunil Agrawal as chief financial officer for another year till Mar. 1, 2026. End
Edited by Akul Nishant Akhoury
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