LIC Q3 Results: Net profit jumps 17% to ₹11,056 crore; Net-premium income drops 8.6% YoY | Stock Market News

LIC Q3 Results: Life Insurance Corporation of India (LIC) announced its October-December quarter results for fiscal 2024-25 (Q3FY25) on Friday, February 7, reporting a rise of 17 per cent to ₹11,056 crore, compared to ₹  ₹9.444.42 crore in the corresponding period last year. The growth in net profit for India’s biggest state-run insurer was boosted by a fall in employee-related expenses, but the expected profit from new premiums declined.

LIC’s net premium income (NPI) moderated to ₹1,06,891 crore in the third quarter of the current fiscal compared to ₹1,17,017 crore in the same period a year ago. The total income also declined to ₹2,01,994 crore in the latest December quarter compared to ₹2,12,447 crore in the year-ago period.

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LIC Q3 Results: Key Metrics

LIC’s policy sales in the quarter were under pressure due to new regulations, which reduced the charges policyholders paid if they closed their policies before maturity. The insurer had boosted sales before the norm changed in October. Meanwhile, LIC has been focusing on increasing the share of high-margin policies. 

LIC’s share of such policies sold rose to 27.7 per cent in the December quarter compared to 26.3 per cent in the preceding September quarter. LIC’s value of the new business (VNB), which measures the expected profit from new premiums, fell 27 per cent year-over-year (YoY) to ₹1,926 crore. 

A lower VNB value could impact the insurer’s profit in the coming quarters. The solvency ratio, which measures an insurer’s ability to meet its long-term financial obligations, rose to 2.02 during the quarter from 1.93 a year earlier and 1.98 in the prior quarter. 

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During the December quarter, management expenses decreased to ₹14,416 crore, compared to ₹18,194 crore in the same period a year ago. “Our focus and strategy remain consistent towards changing our product and channel mix to serve the needs of our customers in a dynamic environment,” said LIC MD and CEO Siddhartha Mohanty.

According to the management, LIC is exploring the possibility of buying a stake in a health insurance company. During the nine months ended December 2024, LIC’s net profit increased by eight per cent to ₹29,138 crore, compared to ₹26,913 crore in the same period a year ago.

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In terms of market share measured by first-year premium income, as per IRDAI, LIC continues to be the market leader in the country’s life insurance business with an overall market share of 57.42 per cent for nine months ended December 2024. The total premium income increased to ₹3,40,563 crore for the nine-month period ended December 2024, registering a growth of 5.51 per cent.

Assets Under Management (AUM) increased by 10 per cent to ₹54,77,651 crore in the December quarter, compared to ₹49,66,371 crore in the year-ago period. The solvency ratio rose to 2.02 compared to 1.93 on December 31, 2023. On Friday, shares of LIC settled 1.56 per cent lower at ₹815.95 apiece on the BSE.