LIC Q1 Results: PAT Jumps 9.61% To Rs. 10,461 Cr; Net Premium Income Zooms 15.66%

The Life Insurance Corporation of India (LIC) released its financial figures on Thursday for the quarter that ends on June 30, 2024. The profit after tax (PAT) increased by 9.61% to Rs. 10,461 crore for the quarter ended June 30, 2024, from Rs. 9,544 crore for the same period in 2023.

Total premium income jumped by 15.66% to Rs. 1,13,770 crore for the quarter ended June 30, 2024, from Rs. 98,363 crore for the same period in 2023. The total individual business premium climbed by 7.04% to Rs. 67,192 crore for the quarter that ended on June 30, 2024, from Rs. 62,773 crore for the same period the previous year. The Group Business's total premium income for the quarter that ended on June 30, 2024, was Rs. 46,578 crore, up 30.87% from Rs. 35,590 crore for the same period in 2023.

In the individual segment, a total of 35,65,519 policies were sold during the quarter that ended on June 30, 2024, representing a rise of 10.86%, as opposed to 32,16,301 policies sold during the quarter that ended on June 30, 2023. The total premium for the quarter that ended on June 30, 2024, was Rs. 11,560 crore on an Annualised Premium Equivalent (APE) basis. Value of New Business (VNB) climbed by 23.66% to Rs. 1,610 crore for the quarter ending June 30, 2024, from Rs. 1,302 crore for the same period in 2023. Compared to the 13.7% for the quarter ended June 30, 2023, the net VNB margin grew by 20 basis points to 13.9% for the quarter ended June 30, 2024.

According to LIC, on June 30, 2024, its solvency ratio climbed to 1..99 from 1.89 in the same period in 2023. As of June 30, 2024, the Assets Under Management (AUM) were at Rs. 53,58,781 crore, up 16.22% year on year from Rs. 46,11,067 crore from Q1FY24. The overall expense ratio dropped by 98 basis points to 11.87% for the quarter that ended on June 30, 2024, from 12.85% for the quarter that ended on June 30, 2023. For the quarter that ended on June 30, 2024, the Yield on Investments for policyholders' funds, excluding unrealised gains, was 8.54%, compared to 8.78% for the year-ago quarter.

Shri Siddhartha Mohanty, CEO & MD, LIC said :- "During the first quarter of this financial year, our market share increased to 64.02% as compared to 61.42% for the same quarter of previous year and 58.87% for the full year ended March 31, 2024. LIC is progressing on its stated objective of gaining market share after having focused, during the last year, on consolidating changes in product mix, channel mix and margin improvement. The momentum around increasing share of Non Par products within Individual segment continues and our Non Par Share, on an APE basis, within the Individual business has increased to 23.94% in the first quarter of FY25 as compared to 10.22% for the same quarter last year."

"While achieving these growth parameters our margin is stable and our expenses ratio has declined by 98 bps to 11.87% in this quarter. As leader of the insurance industry in India we are conscious of our responsibility to deliver enhanced insurance penetration and we look forward to working with the regulatory authorities to achieve the same. We are committed to further optimizing our product and channel mix and improvement of margins. With the digital transformation exercise underway we intend to create a seamless experience for our customers and partners. We thank our customers, shareholders, distribution partners and employees whose continuous support allows us to create superior sustainable value as we move to next stage of our journey," Shri Siddhartha Mohanty added.

With an overall market share of 64.02% in the Indian life insurance sector, LIC remains the market leader in terms of market share as determined by First Year Premium Income (FYPI) (as per IRDAI). LIC has a market share of 76.59% in the Group business and 39.27% in the Individual business as of the quarter that ended on June 30, 2024.