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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Hindus have consolidated, BJP will cross 135 seats in WB: Suvendu Adhikari after early trends
Kolkata: Suvendu Adhikari on Monday said he was confident that the Bharatiya Janata Party would form the government in West Bengal as early counting trends began to emerge.
Speaking after initial trends in the ongoing vote counting, Adhikari said the party was expecting to win more than 135 seats in the state.
He also claimed that Hindu votes had consolidated in favour of the BJP, which, according to him, would translate into victory for the party.
Counting of votes is currently underway, and official results are awaited.
