LIC Q1 results: State-run insurance giant reports 9 percent jump in consolidated profit at Rs 10,544 crore

The country’s largest insurer Insurance Corporation of India (LIC) reported a 9 percent year-on-year (YoY) increase in consolidated net profit at Rs 10,544 crore for the first quarter ended June 2024 compared to Rs 9,635 crore in the corresponding quarter last year. 

The state-run insurer on August 8 reported a 16 percent YoY gain in net premium income during the quarter at Rs 1.14 lakh crore as against Rs 98,755 crore in the corresponding quarter of the previous year. 

In terms of market share measured by First Year Premium Income (FYPI) (as per IRDAI), the insurance giant commands an overall market share of 64.02 percent. 

LIC had a market share of 39.27 percent in individual business and 76.59 percent in the group business for the quarter ended June 2024. The total premium income for June quarter was at Rs 1.13 lakh crore in the reporting period compared to Rs 98,363 crore a year ago. 

Its total individual business premium for the June 2024 quarter stood at at Rs 67,192 crore, an increase of 7.04 percent, compared to Rs 62,773 crore during the corresponding period of the previous year. 

The insurer’s Group Business total premium income for the quarter came in at Rs 46,578 crore as against Rs 35,590 crore a year earlier registering a growth of 31 percent. 

On an annualised premium equivalent (APE) basis, the total premium was Rs 11,560 crore in the first quarter of which 58.37 percent was accounted for by the individual business and 41.63 percent by the Group Business. 

LIC’s Value of New Business (VNB) for the quarter rose by 24 percent to Rs 1,610 crore compared to Rs 1,302 crore in the year ago quarter. The net VNB margin for the same period increased by 20 bps to 13.9 percent.  

The insurer’s Solvency Ratio as on June 2024 increased to 1.99 as against 1.89 on June 2023. Its Assets Under Management (AUM) increased to Rs 53,58,781 crore as on June 30, 2024, compared to Rs 46,11,067 crore on June 30, 2023, registering an increase of 16.22 percent YoY. 

The Overall Expense Ratio for the quarter ended June was 11.87 percent compared to 12.85 percent for the corresponding quarter last year registering a decrease of 98 bps. 

Commenting on the results, Siddhartha Mohanty, CEO & MD of LIC, said, “During the first quarter of this financial year, our market share increased to 64.02 percent compared to 61.42 percent for the same quarter of previous year and 58.87 percent for the full year ended March 31,2024. LIC is progressing on its stated objective of gaining market share after having focused, during the last year, on consolidating changes in product mix, channel mix and margin improvement.” 

The momentum around increasing share of Non-Par products within Individual segment continues and our Non-Par Share, on an APE basis, within the Individual business has increased to 23.94 percent in the first quarter of FY25 compared to 10.22 percent for the same quarter last year,” Mohanty added.  

As leader of the insurance industry in India we are conscious of our responsibility to deliver enhanced insurance penetration and we look forward to working with the regulatory authorities to achieve the same, he said.