Siddhartha Mohanty, CEO & MD, LIC
Siddhartha Mohanty, CEO & MD, LIC, said, “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”
Mumbai: Life Insurance behemoth Life Insurance Corporation’s net profit of for the quarter ended June 30th, 2024 was Rs 10,461 crore as compared to Rs 9,544 crore for the quarter ended June 30th, 2023 registering a growth of 9.61%.
The corporation’s Board of Directors approved and adopted the standalone and consolidated financial results for the quarter ending June 30th, 2024.
LIC’s total premium income for quarter ended June 30th, 2024 was Rs 1,13,770 crore as
compared to Rs 98,363 crore for the quarter ended June 30th 2023, registering a growth of 15.66%.
The total individual business premium of the company for the quarter ended June 30th, 2024 increased to Rs 67,192 crore from Rs 62,773 crore for the comparable period of previous year, showing an increase of 7.04%.
The corporation’s Value of New Business (VNB) for the reporting period was Rs 1,610 crore as compared to Rs 1,302 crore for the quarter ended June 30th, 2023, registering a growth of 23.66%.
LIC’s net VNB margin for the quarter ended June 30th, 2024 increased by 20 bps to 13.9% as compared to 13.7% for the quarter ended June 30th, 2023.
The corporation has made a net profit of Rs 15,500 crore in its equity portfolio, showing a growth of 13.5% in Q1FY25.
LIC has remained a net buyer in the equity market during reporting quarter and has invested Rs 38,000 crore during the period.
In FY 24, LIC, the largest capital market player, has invested Rs 1,32 ,000 crore in the domestic equity market. The corporation currently has a total equity portfolio of Rs 15 lakh crore.
Siddhartha Mohanty, CEO & MD, LIC, said,“ 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.
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, he added.
On the impact of new surrender regulations on LIC, Mohanty said, life insurance industry and LIC are still talking insurance regulator IRDAI on how to implement it by the mandated deadline of October 2024.
During the first quarter of this financial year, LIC’s 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.
LIC continues to be the market leader by market share in Indian life insurance business with overall market share of 64.02%.
In Q1 FY 25 , LIC had a market share of 39.27% in individual business and 76.59% in the group business. The corporations’ group business total premium income for quarter ended June 30th 2024 was Rs 46,578 crores as compared to Rs 35,590 crore for the quarter ended June 30th 2023, showing an increase of 30.87%.
A total of 35,65,519 policies were sold in the individual segment by LIC during the quarter ended June 30th, 2024 as compared to 32,16,301 policies sold during the quarter ended June 30th 2023 registering a growth of 10.86%.
On an Annualized Premium Equivalent (APE) basis, the total premium of LIC was Rs.
11,560 crore for the quarter ended June 30th, 2024. Of this 58.37% (Rs. 6,747 crore)
was accounted for by the Individual Business and 41.63% (Rs. 4,813 crore) by the Group
Business.
Within LIC’s Individual Business the share of Par products on APE basis was 76.06% (Rs. 5,132 crore) and balance 23.94% (Rs. 1,615 crore) was due to Non Par products.
The Non Par APE of the company has increased from Rs. 608 crore for the quarter ended June 30th, 2023 to Rs. 1,615 crore for the quarter ended June 30th, 2024.
On an APE basis, LIC’s Non Par share of Individual business, which was 10.22% for the quarter ended June 30th, 2023 has grown to 23.94% for the quarter ended June 30th, 2024.
The assets under management (AUM) increased to Rs 53,58,781 crore as on June 30th, 2024 as compared to Rs 46,11,067 crore on June 30th, 2023 registering an increase of 16.22% year on year.
The overall expense ratio for the quarter ended June 30th, 2024 was 11.87% as compared to 12.85% for the quarter ended June 30th 2023, registering a decrease of 98 bps.
The corporation’s yield on investments on policyholders funds excluding unrealized gains was 8.54% for the quarter ended June 30th, 2024 as against 8.78% for quarter ended June 30th, 2023.
The solvency ratio as on June 30th, 2024 increased to 1.99 as against 1.89 on June 30th 2023.
For the quarter ended June 30th, 2024, LIC’s persistency ratios on premium basis for the 13th month and 61st month were 78.23% and 61.62%, respectively. The comparable persistency ratios for the corresponding quarter ended June 30th, 2023 were 78.37% and 62.73%, respectively.