LIC Q3 Results: Net Profit Rises 16% YoY, but Premium Income Drops
Life Insurance Corporation of India (LIC) has reported its Q3FY25 financial results. The company posted a 16% year-on-year (YoY) rise in consolidated net profit, reaching Rs 11,009 crore, up from Rs 9,469 crore in the same quarter last year.
On a sequential basis, profit after tax (PAT) surged 42%, growing from Rs 7,729 crore in Q2FY25 to the current figure.
However, net premium income saw a quarter-on-quarter (QoQ) decline of 11%. It dropped from Rs 1,20,326 crore in Q2FY25 to Rs 1,07,330 crore in Q3FY25.
The results were shared after market hours. On Friday, LIC’s stock closed at Rs 811 on the NSE, marking a 2.15% drop or Rs 17.80 lower than the previous close.
LIC Q3FY25 Revenue Breakdown
- First-Year Premium: Rs 7,334 crore, down from Rs 11,245 crore in Q2FY25 and Rs 8,469 crore in Q3FY24.
- Renewal Premium: Rs 64,923 crore, marking a YoY and QoQ increase (Q2FY25: Rs 62,236 crore | Q3FY24: Rs 62,719 crore).
- Single Premium Segment: Declined to Rs 35,172 crore from Rs 46,998 crore in Q2FY25 and Rs 46,451 crore in Q3FY24.
Assets Under Management (AUM) & Other Key Metrics
- AUM Growth: LIC’s assets under management (AUM) rose 10.29% YoY to Rs 54,77,651 crore as of December 31, 2024, compared to Rs 49,66,371 crore a year ago.
- Expense Ratio: Reduced by 231 basis points (bps) to 12.97% for the nine-month period ended December 31, 2024, compared to 15.28% in the corresponding period of 2023.
- Investment Yield: The yield on policyholders’ funds (excluding unrealized gains) stood at 8.82% for the nine-month period, slightly lower than 9.14% recorded in the same period of the previous year.
CEO & MD Siddhartha Mohanty’s Remarks
LIC CEO & MD Siddhartha Mohanty highlighted the company’s strategic focus on product and channel mix adaptation to align with dynamic market conditions.
“For the nine-month period ended December 31, 2024, the Non-Par share within the individual business increased to 27.68% (APE basis) from 14.04% in the same period last year. Additionally, the Value of New Business (VNB) margin improved to 17.1%, up from 16.6% in the previous year.”
Conclusion
LIC’s strong profit growth and rising AUM demonstrate its resilience despite a decline in net premium income. The insurer’s focus on strategic product shifts and operational efficiency is expected to drive long-term growth in a competitive market.