What Led to LIC's 13.8% Surge in Group Premiums for May?
Click to start listening
Synopsis
LIC's latest report reveals a significant growth in group premiums for May, defying trends in individual policies. With a robust increase in new business premiums, the corporation is set to shape the insurance landscape this financial year. Discover the implications of these figures and what they mean for policyholders and investors alike.
Key Takeaways
- LIC's group premium increased by 13.79% in May.
- Total new business premium rose to Rs 18,405.04 crore.
- Overall life insurance industry growth was 12.68%.
- Individual premiums saw a slight decline of 0.69%.
- LIC's total policy issuance was 10.68 lakh in May.
New Delhi, June 9 (NationPress) The Life Insurance Corporation of India (LIC), recognized as the largest life insurer in the nation, has reported a remarkable 13.79% increase year-on-year in group premiums for the month of May this year. According to data released by the Life Insurance Council on Monday, group premiums for the first two months of the financial year 2025-2026 have risen by 13.66%.
In May, LIC's group premium collection reached Rs 14,374.87 crore, an increase from Rs 12,632.26 crore in May 2024. The total new business premium also saw a growth of 10.27%, climbing from Rs 16,690.39 crore in May 2024 to Rs 18,405.04 crore this May.
The overall life insurance sector collected Rs 30,463.20 crore, reflecting a 12.68% growth compared to Rs 27,034.14 crore from the same month last year.
In the Individual Premium category, LIC experienced a modest decline of 0.69%, with collections of Rs 4,030.17 crore in May 2025 compared to Rs 4,058.13 crore in May 2024.
During May this year, LIC issued a total of 10.68 lakh policies compared to 12.51 lakh in the same period last year. Individual policies numbered 10.67 lakh this month, a slight decrease from 12.48 lakh in May 2024. The number of group policies issued was 1,389, a decline from 2,279 in May 2024.
For the period of April-May 2025, total premiums collected by LIC amounted to Rs 32,015.68 crore, up from Rs 29,074.03 crore in the previous year. In the Individual Premium segment, collections reached Rs 7,191.04 crore, a decrease from Rs 7,233.61 crore last year. The Group Premium segment stood at Rs 24,824.64 crore, improving from Rs 21,840.42 crore in the previous year.
LIC issued a total of 17.94 lakh policies during April and May 2025 compared to 21.07 lakh policies in the same timeframe last year. The Individual Category accounted for 17.91 lakh policies in April-May 2025, down from 21.03 lakh in the previous year. Group Policies decreased to 2,558 in April-May 2025 from 3,704 in April-May 2024.
LIC also reported a substantial 38% YoY growth in consolidated net profit for Q4 FY25, reaching Rs 19,039 crore, alongside announcing a final dividend of Rs 12 per share. Although net premium income experienced a slight decline, the full financial year showed an 18% increase in PAT to Rs 48,151 crore. A bonus allocation of Rs 56,190.24 crore was also declared for policyholders.
Point of View
It is imperative to recognize the substantial growth reported by LIC in group premiums, reflecting a resilient insurance market. Despite the slight decline in individual premiums, the overall figures indicate a promising trajectory for the financial year. This growth is crucial for policyholders and the economy, showcasing LIC's commitment to maintaining its leadership in the insurance sector.
NationPress
09/06/2025
Frequently Asked Questions
What is the percentage increase in LIC's group premiums for May?
LIC's group premiums for May witnessed a remarkable increase of 13.79% year-on-year.
How much did LIC collect in group premiums for May 2025?
In May 2025, LIC collected Rs 14,374.87 crore in group premiums.
What is the overall growth of the life insurance industry in May?
The overall life insurance industry experienced a growth of 12.68%, reaching Rs 30,463.20 crore.
How many total policies did LIC issue in May 2025?
LIC issued a total of 10.68 lakh policies in May 2025.
What was LIC's net profit growth in Q4 FY25?
LIC reported a strong 38% YoY growth in consolidated net profit, reaching Rs 19,039 crore.
