Life Insurance Corporation of India (LICI) Q3 24/25 earnings summary

Executive summary

• Total premium income for nine months ended Dec 31, 2024, grew 5.51% year-over-year to INR 340,563 crore, maintaining leadership as India's largest life insurer.

• Net profit after tax for the period was INR 29,138 crore, up 8.3% year-over-year.

• Embedded Value rose 24% year-over-year to INR 8,21,716 crore as of September 2024.

• Continued focus on digital transformation, product diversification, and expanding omni-channel distribution.

• Standalone and consolidated unaudited financial results for the quarter and nine months ended December 31, 2024, were approved by the Board on February 7, 2025.

Financial highlights

• Individual new business premium rose 9.73% year-over-year; group business premium increased 5.39%.

• Assets under management grew 10.29% year-over-year to INR 54,77,651 crore.

• Net VNB for nine months was INR 6,477 crore, up 9.08% year-over-year; VNB margin improved by 50 bps to 17.1%.

• Solvency ratio improved to 2.02 from 1.93 a year ago.

• Overall expense ratio decreased by 231 bps to 12.97%.

Outlook and guidance

• Cautiously optimistic for the remainder of FY2025, expecting continued industry growth driven by rising insurance awareness and demand.

• Strategic focus on enhancing market share, increasing non-par product mix, and maximizing investment yields.

• Plans to launch new products and further develop digital and alternate distribution channels.

• Organization preparing for regulatory changes and aiming for proactive compliance.