LIC Reports Strong Q1 Results, Shifts Focus to Non-Par Products and Digital Growth

2 min read     Updated on 07 Aug 2025, 10:15 PM
scanxBy ScanX News Team
whatsapptwittershare
Overview

LIC of India reported a 5.02% increase in Q1 profit after tax to ₹10,986.00 crore. Total premium income grew by 4.77% to ₹1,19,200.00 crore. The insurer's strategic shift towards non-participating products showed significant growth, with their share in individual business rising to 30.34%. Value of New Business grew by 20.75% to ₹1,944.00 crore, with net VNB margin increasing to 15.4%. LIC maintained market leadership with a 63.51% share in first-year premium income. Assets Under Management grew by 6.47% to ₹57,05,341.00 crore. The company is focusing on digital expansion and operational efficiency, with plans to launch new products and increase insurance penetration.

16130734

*this image is generated using AI for illustrative purposes only.

LIC of India , the country's largest insurer, has reported robust financial results for the first quarter, while outlining its strategic pivot towards high-margin non-participating products and digital expansion initiatives.

Financial Highlights

LIC's profit after tax (PAT) for Q1 increased by 5.02% year-on-year to ₹10,986.00 crore, up from ₹10,461.00 crore in the same quarter last year. The insurer's total premium income grew by 4.77% to ₹1,19,200.00 crore, compared to ₹1,13,770.00 crore in the corresponding quarter.

Strategic Shift to Non-Par Products

A key highlight of LIC's performance was the significant growth in its non-participating (non-par) product segment. The share of non-par products within the individual business, on an Annualized Premium Equivalent (APE) basis, increased to 30.34% in Q1, up from 23.94% in the same quarter last year. This represents a substantial growth of 32.63% in non-par APE, rising from ₹1,615.00 crore to ₹2,142.00 crore.

Value of New Business and Margin Improvement

The insurer's focus on high-margin products has yielded positive results. The Value of New Business (VNB) for Q1 grew by 20.75% to ₹1,944.00 crore, compared to ₹1,610.00 crore in the same period last year. Notably, the net VNB margin increased by 150 basis points to 15.4%, up from 13.9% in the corresponding quarter.

Digital Expansion and Operational Efficiency

LIC's strategic pivot also includes a strong emphasis on digital expansion. While specific details of digital initiatives were not provided, the company's overall expense ratio decreased by 140 basis points to 10.47%, down from 11.87% in the same quarter last year, indicating improved operational efficiency.

Market Leadership and Asset Growth

Despite intense competition, LIC maintained its market leadership with a 63.51% share in overall first-year premium income. The corporation's Assets Under Management (AUM) grew by 6.47% year-on-year to ₹57,05,341.00 crore as of June 30.

Management Commentary

R Doraiswamy, CEO & MD of LIC, stated, "Key elements of our strategy like increase in Non Par share in Individual business, increase in VNB margin, increase in Banca share are fully on track." He also highlighted the success of the 'Bima Sakhi Yojana', which has appointed nearly 2 lakh women agents who sold over 3.26 lakh policies in Q1.

Future Outlook

Looking ahead, LIC plans to launch new products to meet evolving customer needs and further enhance its customer outreach. The insurer remains committed to working with regulatory authorities and various state and district-level insurance committees to increase life insurance penetration in India.

As LIC continues its strategic transformation, the focus on high-margin non-par products, digital initiatives, and operational efficiency is expected to drive long-term value creation for the insurance giant.

Historical Stock Returns for LIC of India

1 Day5 Days1 Month6 Months1 Year5 Years
-0.87%-1.12%-6.22%+8.44%-21.23%+1.11%
LIC of India
View in Depthredirect
like19
dislike

LIC Reports Robust Q1 Results: Net Profit Rises 5.02% to ₹10,986 Crore, VNB Margin at 15.4%

2 min read     Updated on 07 Aug 2025, 06:47 PM
scanxBy ScanX News Team
whatsapptwittershare
Overview

LIC of India announced robust Q1 financial results, with net profit rising 5.02% to ₹10,986.00 crore. Total premium income increased by 4.77% to ₹1,19,200.00 crore. The company maintained market leadership with a 63.51% share in First Year Premium Income. Individual business premium grew 6.37%, while group business premium rose 2.46%. The Value of New Business increased by 20.75% to ₹1,944.00 crore, with a VNB margin of 15.4%. LIC's solvency ratio improved to 2.17, and Assets Under Management grew 6.47% year-on-year to ₹57,05,341.00 crore.

16118247

*this image is generated using AI for illustrative purposes only.

LIC of India , the country's largest insurer, has reported strong financial results for the first quarter, demonstrating resilience and growth in key areas of its business.

Profit and Revenue Growth

LIC announced a net profit of ₹10,986.00 crore for the quarter, marking a 5.02% increase from ₹10,461.00 crore in the same period last year. This growth in profitability showcases the company's ability to navigate market challenges effectively.

The insurer's total premium income rose to ₹1,19,200.00 crore, up 4.77% from ₹1,13,770.00 crore in the corresponding quarter of the previous year. This increase in premium income reflects LIC's strong market position and customer trust.

Market Leadership and Business Segments

LIC continues to dominate the Indian life insurance market with an overall market share of 63.51% in terms of First Year Premium Income (FYPI). The company maintained its leadership in both individual and group business segments, with market shares of 38.76% and 76.54%, respectively.

The total individual business premium increased by 6.37% to ₹71,474.00 crore, while the group business total premium income grew by 2.46% to ₹47,726.00 crore.

Product Mix and Value of New Business

A notable shift in LIC's product mix was observed, with the share of non-par products within the individual business segment increasing to 30.34% on an Annualized Premium Equivalent (APE) basis, up from 23.94% in the same quarter last year. This strategic move towards non-par products has contributed to improved profitability.

The Value of New Business (VNB) saw a significant increase of 20.75%, reaching ₹1,944.00 crore for the quarter. Importantly, LIC achieved a VNB margin of 15.4% in the first quarter, indicating enhanced profitability of new business written.

Financial Strength and Efficiency

LIC's financial position remained robust, with the solvency ratio improving to 2.17, compared to 1.99 a year ago. This increase in solvency ratio demonstrates the company's strong capital position and ability to meet long-term obligations.

The insurer also showed improved operational efficiency, with the overall expense ratio decreasing by 140 basis points to 10.47% from 11.87% in the previous year's quarter.

Assets Under Management and Investment Yield

Assets Under Management (AUM) grew by 6.47% year-on-year to ₹57,05,341.00 crore, reflecting the company's expanding business and investment portfolio. The yield on investments for policyholders' funds, excluding unrealized gains, stood at 8.45% for the quarter.

Management Commentary

R Doraiswamy, CEO & MD of LIC, commented on the results: "During the first quarter of this financial year, our overall market share by First Year Premium Income was 63.51% and we maintained our leadership in both Individual and Group Business. Key elements of our strategy like increase in Non Par share in Individual business, increase in VNB margin, increase in Banca share are fully on track."

He also highlighted the company's focus on launching new products to meet customer needs and enhancing customer outreach, including the appointment of nearly 2 lakh women as Bima Sakhis who have sold over 3.26 lakh policies during the quarter.

Board Approval of Financial Results

LIC's Board of Directors approved the unaudited financial results for the quarter ended June 30, during a board meeting. The board considered and approved both standalone and consolidated unaudited financial results, along with a limited review report. The results and review report have been made available on the company's website.

LIC's strong performance demonstrates its ability to adapt to changing market dynamics while maintaining its dominant position in the Indian life insurance sector. The company's focus on diversifying its product mix, improving profitability, and enhancing operational efficiency positions it well for sustained growth in the coming quarters.

Historical Stock Returns for LIC of India

1 Day5 Days1 Month6 Months1 Year5 Years
-0.87%-1.12%-6.22%+8.44%-21.23%+1.11%
LIC of India
View in Depthredirect
like16
dislike
More News on LIC of India
Explore Other Articles
885.00
-7.75
(-0.87%)