LIC reports 4% decline in Q2 net profit, but sees growth in premium income

Life Insurance Corporation (LIC) reported a 4% year-on-year (YoY) decline in its standalone net profit for the second quarter of FY25. The net profit for the quarter ended September 2024 stood at ₹7,621 crore, down from ₹7,925 crore in the same period last year.

Despite the profit dip, LIC saw growth in key financial metrics.

Net premium income for the quarter increased by 11.5% YoY to ₹1.20 lakh crore, compared to ₹1.08 lakh crore in the corresponding period of FY24.

Investment income rose 16% YoY to ₹1.08 lakh crore, up from ₹93,942 crore in Q2 FY2024.

LIC's solvency ratio improved to 1.98% from 1.90% a year ago.

Gross Non-Performing Assets (GNPA) was reported at 1.72% during the second quarter against 1.95% quarter-on-quarter. It had reported a 2.43 % GNPA in the same period a year ago.

For the half-year ended September 30, 2024, the company’s overall market share increased to 61.07%, up from 58.50% in the half-year of FY24.

Total premium income for the half-year rose by 13.56% to ₹2.33 lakh crore, while new business premium income from individual policies increased by 17.29% to ₹29,538 crore.

The company’s Annualised Premium Equivalent (APE) rose by 23.86% to ₹28,025 crore. Specifically, individual APE rose by 24.08% to ₹18,163 crore, while group APE grew by 23.44% to ₹9,862 crore.

In the first-half of FY25, the value of new business (VNB) increased by 37.74%, reaching ₹4,551 crore. Additionally, LIC’s Indian Embedded Value (IEV) grew by 24.01% to ₹8.22 lakh crore, and its assets under management (AUM) increased by 16.78% to ₹55.40 lakh crore.

Shares of LIC settled at ₹915.55 apiece on the NSE on Friday (November 8), down 1.52%.