Shares of Life Insurance Corporation of India surged over 7% after reporting over 18% YoY rise in FY25 PAT. The company recorded PAT of ₹48,151 crore. Individual New Business Premium of ₹62,495 crores, signifying an increase of 8.28%.
The shares of Life Insurance Corporation of India Ltd zoomed over 7% in the early trade as the company announced strong financial results for the fourth quarter and full year ended March 31, 2025. As of 12:45 pm IST, the stock was trading at ₹929, up by 6.5%. On a YTD basis, the stock is up by 4.11%.
LIC’s total premium income rose to ₹4,88,148 crore from ₹4,75,070 crore in FY24. Individual premium income grew to ₹3,19,036 crore, while Group premium income slightly declined to ₹1,69,112 crore. For the year ended March 31, 2025, LIC maintained its dominant position in India’s life insurance market with a 57.05% market share in First Year Premium Income (FYPI), as per IRDAI data. It held a 37.46% share in the Individual segment and 71.19% in the Group segment.
PAT for the year ended March 31st 2025, was at ₹48,151 crore as compared to ₹40,676 crore for the year ended March 31st 2024, thereby registering an increase of 18.38%. PAT for the quarter ended March 31st 2025, stood at ₹17,616.30 crore, which grew by 40.66% YoY from ₹12,524.17 crore in Q4FY24.
Additionally, the Board of Directors have recommended a final dividend of ₹12 per share for the financial year 2024-25, subject to approval of shareholders.
The insurer sold 1.78 crore individual policies in FY25, down from over 2.03 crore in FY24. On an Annualised Premium Equivalent (APE) basis, LIC’s total premium was ₹56,828 crore, with 67.25% from the Individual business and 32.75% from the Group business. Within the Individual segment, Par products contributed ₹27,636 crore (72.31%) and Non-Par products ₹10,581 crore (27.69%), up 50.28% YoY. This led to a rise in the Non-Par share of the Individual APE from 18.32% in FY24 to 27.69% in FY25.
Value of New Business (VNB) rose by 4.47% to ₹10,011 crore, and the VNB margin improved 80 basis points to 17.6%. LIC’s solvency ratio strengthened to 2.11 from 1.98 in the previous year. Persistency ratios on a premium basis stood at 74.84% (13th month) and 63.12% (61st month), while on a policy count basis, they were 64.12% and 50.31%, respectively—largely stable with marginal changes YoY.
Assets Under Management (AUM) increased 6.45% to ₹54.52 lakh crore. The overall expense ratio declined significantly by 315 basis points to 12.42%. Investment yields (excluding unrealized gains) moderated to 8.65% from 8.93% in FY24. LIC allocated ₹56,190 crore in bonuses to policyholders in FY25, up from ₹52,956 crore in FY24.
Commenting on the performance for Q4 & FY25, Shri Siddhartha Mohanty, CEO & M D, LIC said, “The year 2024-25 was a very exciting and challenging year for our business. After registering a very strong performance in the first six months, we had to redesign and relaunch products to comply with regulatory changes. However, we are very happy to state that this year, we have achieved many milestones. First, we have achieved Individual New Business Premium of ₹62,495 crore, in a single year.
Second, our Net VNB for the year is ₹10,011 crore, i.e. over ₹10,000 crore for the first time. Third, our VNB margin is steadily on the rise, reaching 17.6% as of March 31st, 2025. Fourth, our strategy to increase Non Par share is further getting consolidated. This year, Non Par APE share within the individual business has risen to 27.69%. Finally, we are proud to say that we have declared a bonus of ₹56,190.24 crore to policyholders. We are thankful to all our stakeholders for their support and faith in us. We are committed to delivering profitable growth as we move ahead in our journey post listing.”
Life Insurance Corporation (LIC) is the largest insurance provider in India. It has a market share of above 57.05% in new business premium. The company offers participating insurance products and non-participating products like unit-linked insurance products, saving insurance products, term insurance products, health insurance, and annuity & pension products.
Disclaimer: The article is for informational purposes only and not investment advice.
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