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Informist, Thursday, Aug. 7, 2025

 

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--LIC Apr-Jun net profit INR 109.87 bln vs INR 104.61 bln year ago
--LIC Apr-Jun net premium income INR 1.192 tln vs INR 1.138 tln year ago 
--LIC solvency ratio at 2.17 times as on Jun 30 vs 1.99 times year ago 
--LIC 13th mo persistency 70.90% on Jun 30 vs 72.35% year ago 
--LIC 61st mo persistency 58.31% on Jun 30 vs 58.41% year ago 
--LIC Apr-Jun first yr premium income INR 75.25 bln vs INR 74.70 bln yr ago
--LIC assets under management at INR 57.05 tln as on Jun 30, up 6.5% on yr 
--LIC Apr-Jun value of new business INR 19.44 bln, up 20.8% on year 
--LIC Apr-Jun value of new business margin 15.4%, up 150 bps on year

 

By Aaryan Khanna and Vaishali Tyagi 

 

MUMBAI – Life Insurance Corp. of India's profit after tax rose 5.0% on year in the June quarter, in line with net premium income growth. The state-owned insurer was able to shrink management expenses and keep overall expenses in check amid the sluggish top-line growth.

 

The life insurance behemoth's net profit for the June quarter rose to INR 109.87 billion from INR 104.61 billion a year ago. The bottom line contracted 42.2% sequentially, an usual occurrence from a seasonally strong March quarter.

 

Net premium earned in the reporting quarter rose 4.8% on year to INR 1.192 trillion and net investment income in the policyholders' account rose 7.0% on year to INR 1.029 trillion. This led to total income growing only 5.7% on year to INR 2.228 trillion.

 

Meanwhile, management expenses contracted 7.6% on year to INR 124.99 billion, helped by a marginal decline in commission expenses and double-digit reduction in employee costs. Including net benefits paid and changes in actuarial liability, total expenses in the policyholders' account rose 6.0% on year to INR 2.119 trillion.

 

The company released its financial results for Apr-Jun after market hours Thursday. Its shares ended 0.9% lower at INR 885 on the National Stock Exchange. The company's first-year premium income rose marginally to INR 75.25 billion from INR 74.70 billion a year ago.

 

In terms of annualised premium, the 13th-month persistency ratio, which tracks how long customers stay with their policies, fell to 70.90% as on Jun. 30 from 72.35% a year ago. Also, the 61st month persistency ratio was 58.31%, down slightly from 58.41% a year ago.

 

LIC's assets under management increased 6.47% to INR 57.05 trillion as on Jun. 30. The solvency ratio of the country's largest life insurer was 2.17 times as on Jun. 30, higher than the regulatory requirement of 1.50 times. The metric was 1.99 times a year ago.

 

For the reporting quarter, the value of new business grew to INR 19.44 billion, registering a growth of nearly 21% on year. The net value of new business margin for the June quarter increased 150 basis points to 15.4% from 13.9% a year ago. The company's bottom line received support from a rise in its total individual business premium to INR 714.74 billion, up 6.37% from a year ago.

 

Life Insurance Corp. sold a total of 3.04 million policies in the individal segment in Apr-Jun, significantly lower than the 3.57 million policies it sold in the corresponding quarter a year ago. It was a fall of 14.75% on year. On an annualised premium equivalent basis, the total premium of the insurance giant was INR 126.52 billion for the June quarter. Business from individuals accounted for 55.81% of the total premium while the group insurance business accounted for the remaining 44.18%.  End

 

Edited by Rajeev Pai

 

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