The results highlight robust growth across key financial metrics, including profit after tax (PAT), new business premiums, and assets under management (AUM). LIC continues to maintain its dominant market share in the Indian life insurance sector, despite a slight decline in overall market share compared to the previous year.

Key Highlights of LIC’s Nine-Month FY25 Performance

Financial Performance

• Profit After Tax (PAT): Rs. 29,138 crore, up 8.27% YoY compared to Rs. 26,913 crore in the same period last year.
• Total Premium Income: Rs. 3,40,563 crore, up 5.51% YoY from Rs. 3,22,776 crore in 9MFY24.
• New Business Premium Income (Individual): Rs. 42,441 crore, up 9.73% YoY.
• Renewal Premium Income (Individual): Rs. 1,78,975 crore, up 4.64% YoY.
• Group Business Premium Income: Rs. 1,19,147 crore, up 5.39% YoY.
• Assets Under Management (AUM): Rs. 54,77,651 crore, up 10.29% YoY from Rs. 49,66,371 crore in 9MFY24.

Market Share

• LIC remains the market leader in the Indian life insurance sector, with an overall market share of 57.42% based on First Year Premium Income (FYPI) for the nine months ended December 31, 2024. This is slightly lower than the 58.90% market share in the same period last year.
• In the individual business segment, LIC’s market share stood at 37.21%, while in the group business segment, it maintained a dominant 71.70% market share.

Value of New Business (VNB) and Margins

• Value of New Business (VNB): Rs. 6,477 crore, up 9.08% YoY from Rs. 5,938 crore in 9MFY24.
• VNB Margin (Net): Increased by 50 basis points (bps) to 17.1% compared to 16.6% in the same period last year.

Expense Ratio and Solvency Ratio

• Expense Ratio: Reduced by 231 bps to 12.97% from 15.28% in 9MFY24, reflecting improved operational efficiency.
• Solvency Ratio: Improved to 2.02 as of December 31, 2024, compared to 1.93 in the previous year, indicating stronger financial health.

Persistency Ratios

• 13th Month Persistency (Premium Basis): 76.66%, slightly lower than 78% in 9MFY24.
• 61st Month Persistency (Premium Basis): 61.84%, compared to 62.40% in 9MFY24.
• 13th Month Persistency (Number of Policies Basis): 66.47%, down from 67.22% in 9MFY24.
• 61st Month Persistency (Number of Policies Basis): 49.22%, compared to 50.23% in 9MFY24.

Key Operational Metrics

Individual Business Performance

• Individual Business APE (Annualized Premium Equivalent): Rs. 24,612 crore, up 4.72% YoY.
• Non-Par APE Share: Increased significantly to 27.68% of individual business APE, up from 14.04% in 9MFY24. The Non-Par APE grew by 106.52% YoY to Rs. 6,813 crore.
• Number of Policies Sold: 1,17,10,505 policies, a decline of 6.73% YoY compared to 1,25,56,046 policies in 9MFY24.

Group Business Performance

• Group Business APE: Rs. 13,363 crore, up 8.76% YoY.

Strategic Initiatives and Digital Transformation

LIC has been focusing on transforming its product and channel mix to better serve customer needs in a dynamic environment. The company has also been investing in digital transformation initiatives, which are expected to yield visible outcomes in the coming months.

One of the key initiatives launched during the period was the "Bima Sakhi Yojana", aimed at empowering women by offering them careers in insurance sales as agents. Since its launch on December 9, 2024, over 1.25 lakh women have registered, and more than 70,000 have been appointed as Bima Sakhis.

Management Commentary

Shri Siddhartha Mohanty, CEO & MD of LIC, commented on the results: “Our focus and strategy remain consistent towards changing our product and channel mix to serve the needs of our customers in a dynamic environment. The Non-Par share within the individual business increased to 27.68% on an APE basis, compared to 14.04% for the same period last year. Further, the VNB margin has also improved to 17.1% for the nine months ended December 31, 2024, compared to 16.6% for the same period last year. LIC continues to be committed to serving society through higher insurance coverage in the country.”

Conclusion

LIC’s strong performance in the nine months ending December 31, 2024, underscores its resilience and adaptability in a competitive market. With a focus on digital transformation, product innovation, and customer-centric strategies, LIC is well-positioned to maintain its leadership in the Indian life insurance sector. The company’s improved profitability, higher VNB margins, and reduced expense ratio reflect its commitment to operational excellence and sustainable growth.

About Life Insurance Corporation of India (LIC)

LIC is the largest life insurance company in India, with a dominant market share in both individual and group business segments. The company offers a wide range of insurance products and services, catering to the diverse needs of its customers. LIC is also a key player in the Indian financial sector, with significant investments in various asset classes.