LIC reports strong financial performance for Q1 FY25
Mumbai: Life Insurance Corporation of India (LIC) has announced robust financial results for the quarter ending June 30, 2024. The company achieved a Profit After Tax (PAT) of Rs. 10,461 crore, reflecting a 9.61% increase compared to Rs. 9,544 crore in the same quarter of 2023.
LIC maintained its leadership position in the Indian life insurance sector with a commanding 64.02% market share in First Year Premium Income (FYPI), as per the Insurance Regulatory and Development Authority of India (IRDAI). The company secured a 39.27% market share in Individual business and a substantial 76.59% in Group business for the quarter.
The Total Premium Income for the quarter surged to Rs. 1,13,770 crore, up 15.66% from Rs. 98,363 crore in Q1 FY24. Individual Business Premium rose by 7.04% to Rs. 67,192 crore, while Group Business Premium soared by 30.87% to Rs. 46,578 crore.
LIC sold 35,65,519 individual policies during the quarter, a 10.86% increase from 32,16,301 policies in the previous year. On an Annualized Premium Equivalent (APE) basis, total premiums reached Rs. 11,560 crore, with 58.37% from Individual Business and 41.63% from Group Business. The share of Non-Par products in Individual Business APE grew significantly from 10.22% to 23.94%.
The Value of New Business (VNB) for the quarter stood at Rs. 1,610 crore, marking a 23.66% increase from Rs. 1,302 crore a year earlier. The net VNB margin rose by 20 basis points to 13.9%. LIC's solvency ratio improved to 1.99, up from 1.89 the previous year.
Persistency ratios showed minor variations, with the 13th month premium persistency at 78.23% and the 61st month at 61.62%. The corresponding ratios for the previous year were 78.37% and 62.73%, respectively.
Assets Under Management (AUM) grew by 16.22% to Rs. 53,58,781 crore, compared to Rs. 46,11,067 crore a year ago. The overall expense ratio decreased to 11.87% from 12.85%, while the yield on investments was 8.54%, down from 8.78% in Q1 FY24.
Shri Siddhartha Mohanty, CEO & MD of LIC, commented, “We are pleased with our progress, with an increased market share and a growing focus on Non-Par products. Our margins are stable, and our expense ratio has improved. We remain committed to enhancing insurance penetration and optimizing our product and channel mix, with ongoing efforts in digital transformation to better serve our customers.”
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Remarks against St Francis Xavier: Right-wing speaker Gautam Khattar gets bail
Panaji (PTI): A court in Goa on Saturday granted bail to right-wing speaker Gautam Khattar, who was arrested after he allegedly made derogatory comments against St Francis Xavier.
Judicial Magistrate First Class, Vasco, granted regular bail to Khattar, currently admitted to Goa Medical College and Hospital at Bambolim for treatment of chest pain after he was shifted from the District Hospital in Mapusa two days back.
A row erupted after a video of remarks by Khattar, the founder of Sanatan Mahasangh, at an event on April 18 in the presence of Swami Brahmeshanand, State Transport Minister Mauvin Godinho and BJP MLAs Sankulp Amonkar and Daji (Krishna) Salkar, went viral.
St Francis Xavier is revered as the patron saint of Goa.
The controversial remarks led to the Vasco Police registering an FIR against Khattar on charges of hurting religious sentiments and creating enmity between groups.
He was detained in Kullu, Himachal Pradesh, by local police. His custody was later handed over to the Goa Crime Branch, according to officials.
