LIC Achieves Over 16% Growth in Consolidated Net Profit and AUM in Q3
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Synopsis
On February 7, LIC reported a significant 16% rise in consolidated net profit for Q3 FY25, reaching Rs 11,008 crore. The company also noted an increase in AUM by 10.29% and a steady rise in premium income and market share.
Key Takeaways
- 16% increase in consolidated net profit to Rs 11,008 crore.
- AUM rose by 10.29% to Rs 54,77,651 crore.
- New business premium income increased by 9.73%.
- LIC maintains a market share of 57.42%.
- VNB margin improved to 17.1%.
New Delhi, Feb 7 (NationPress) The Life Insurance Corporation of India (LIC) announced a remarkable 16 percent increase in its consolidated net profit, reaching Rs 11,008 crore for the third quarter ending December 2024 (Q3 FY25), compared to Rs 9,468.99 crore from the same quarter last year.
The profit after tax (PAT) for the nine months ending December 31 was Rs 29,138 crore, up from Rs 26,913 crore for the previous year, reflecting an 8.27 percent growth, as stated by the country’s largest insurer in its stock exchange disclosure.
During the first nine months of FY25, total premium income rose by 5.51 percent to Rs 3,40,563 crore, while assets under management (AUM) increased by 10.29 percent to Rs 54,77,651 crore.
In individual business, non-partial annualized premium equivalent (APE) soared by 106.52 percent to Rs 6,813 crore, with the non-par APE share within individual business climbing to 27.68 percent for 9M FY25, compared to 14.04 percent for 9M FY24.
The new business premium income for individuals also saw a 9.73 percent increase, totaling Rs 42,441 crore in the first nine months of FY25.
LIC maintains its status as the market leader in the Indian life insurance sector, boasting an overall market share of 57.42 percent for the nine months ending December 31, 2024.
LIC's CEO and MD, Siddhartha Mohanty, remarked that "our focus and strategy remain steadfast in adapting our product and channel mix to meet customer needs in an ever-changing landscape".
He added that for the nine-month period ending December 31st, 2024, the non-par share within individual business increased to 27.68 percent on an APE basis, compared to 14.04 percent for the same timeframe last year.
Additionally, the value of the new business (VNB) margin improved to 17.1 percent for the nine-month period ending December 31, 2024, up from 16.6 percent for the same period last year.
The VNB for the nine months ending December 31, 2024, stood at Rs 6,477 crore, an increase from Rs 5,938 crore in the same period of 2023, marking a 9.08 percent growth.
Mohanty further highlighted that over 1.25 lakh women have registered in the Bima Sakhi Yojana, with more than 70,000 appointed as Bima Sakhis.
