Life Insurance Corporation of India (LICI) Q1 24/25 earnings summary

Executive summary

• Total premium income for Q1 FY25 grew 15.66% year-over-year to INR 113,770 crore, with individual new business premium up 13.67% and group premium up 30.87% year-over-year.

• Maintains position as India's largest life insurer and global market leader, ranking 107th in Fortune Global 500 and 4th largest insurer worldwide.

• Offers a comprehensive product portfolio with 51 products and 8 riders, catering to diverse customer needs.

• PAT for Q1 FY25 was INR 10,461 crore, up 9.61% year-over-year; VNB grew 23.66% to INR 1,610 crore, with VNB margin at 13.9%, up 20 bps.

• Focuses on digital transformation, operational efficiency, and expanding omni-channel distribution.

Financial highlights

• Renewal premium income (individual) rose to INR 55,300 crore from INR 52,311 crore year-over-year.

• AUM as of June 30, 2024, was INR 5,358,781 crore, up 16.22% year-over-year.

• Expense ratio improved to 11.87% from 12.85% year-over-year.

• Solvency ratio improved to 1.99 from 1.89 year-over-year.

• Claims paid included INR 41,954 crore in maturity claims and INR 5,467 crore in death claims, up 21.21% and 6.22% year-over-year respectively.

Outlook and guidance

• Focus remains on regaining market share, optimizing product and channel mix, and improving margins.

• Digital transformation and agency transformation projects underway to enhance operational efficiency and customer experience.

• Management targets sustainable VNB growth and aims for 20%+ VNB margin in the medium term.