Earnings Review
LIC PAT jumps 38% on yr as employee costs, commissions dip
This story was originally published at 20:06 IST on 27 May 2025
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--LIC FY25 overall expense ratio 12.42% vs 15.57% year ago
--LIC FY25 net value of new business margin 17.6% vs 16.8% year ago
--LIC FY25 value of new business INR 100.11 bln vs INR 95.83 bln year ago
--LIC: Assets under management at INR 54.523 tln as on Mar 31, up 6.5% on yr
--LIC 61st mo persistency 58.54% on Mar 31 vs 59.69% qtr ago, 54.48% yr ago
--LIC 13th mo persistency 68.62% on Mar 31 vs 68.61% qtr ago, 71.86% yr ago
--LIC solvency ratio at 2.11 times as on Mar 31 vs 1.98 times year ago
--LIC FY25 net premium income INR 4.881 tln vs INR 4.751 tln year ago
--LIC FY25 net profit INR 481.51 bln vs INR 406.76 bln year ago
--LIC to pay INR 12 per share final dividend for FY25
--LIC Jan-Mar net premium income INR 1.476 tln vs INR 1.523 tln year ago
--LIC Jan-Mar net profit INR 190.13 bln vs INR 137.63 bln year ago
By Krity Ambey
NEW DELHI – Lower expenses on account of employee costs and net commissions in the quarter ended March helped Life Insurance Corp of India Ltd. to post a 38.2% increase in its net profit to INR 190.13 billion. Sequentially, the state-owned life insurer's profit surged 72%.
The company's employee remuneration and welfare expenses more than halved to INR 59.28 billion in the March quarter from INR 137.50 billion a year ago. The net commission of LIC fell 6.5% to INR 77.11 billion during the reporting quarter. The expenses of management were down 33% on-year to INR 164.95 billion.
LIC's net premium income declined marginally by 3.1% on year to INR 1.476 trillion in the reporting quarter. Other income of the company fell sharply to INR 2.22 billion from INR 141.61 billion a year ago.
The company released its financial results for Jan-Mar on Tuesday after market hours. The company's shares ended 0.1% higher at INR 871.25 on the National Stock Exchange on Tuesday. The company has declared a final dividend of INR 12 per share for 2024-25 (Apr-Mar).
LIC's assets under management increased 6.5% to INR 54.52 trillion as on Mar. 31. The solvency ratio of the country's largest life insurer was 2.11 times as on Mar. 31, higher than the regulatory requirement of 1.50 times. The metric was 1.98 times a year ago.
In terms of annualised premium, the 13th-month persistency ratio, which tracks how long customers stay with their policies, fell to 68.62% as on Mar. 31 from 71.86% a year ago. But the 61st month persistency ratio was 58.54%, higher than 54.48% a year ago.
LIC ended FY25 with the value of new business at INR 100.11 billion, up 4.5% on year. The net value of new business margin, or VNB margin, for the year rose to 17.6% compared to 16.8% in FY24.
LIC's net profit in FY25 was INR 481.51 billion, up 18.4% on year. The company's net premium income inched to INR 4.88 trillion in the year from INR 4.75 trillion in FY24. With an 18% decline in expenses of management during the year, LIC's overall expense ratio improved to 12.42% in FY25 from 15.57% a year ago. End
Edited by Saji George Titus
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