Life Insurance Corporation of India Limited's share price fell slightly on Monday after its third-quarter financial results were announced. The announcement provided insights into the company's financial health, leading to a cautious response from investors.
During morning trade, LIC's stock showed a small decline on the National Stock Exchange (NSE), trading around ₹814 per share and down 0.20%, as investors analysed the company's financial performance.
Profit goes up, but premium income falls
LIC posted a 17% increase in profit after tax (PAT), reaching ₹11,056 crores for the December quarter, compared to ₹9,444 crores in the same period last year. However, net premium income (NPI) went down by 8.65% to ₹1,06,891 crores from ₹1,17,017 crores a year ago.
Total income also fell by 4.92%, settling at ₹2,01,994 crores in Q3 FY25, down from ₹2,12,447 crores in Q3 FY24. On the bright side, LIC managed to cut down expenses to ₹14,416 crores from ₹18,194 crores in the previous year's Q3.
LIC stays strong in the market
Despite the drop in premium income, LIC continues to lead the Indian life insurance sector. According to IRDAI, LIC held a significant market share in First-year premium income (FYPI) for the nine months ending December 2024.
Assets under management (AUM) went up by 10%, reaching ₹54,77,651 crores by December 2024, compared to ₹49,66,371 crores a year ago. Additionally, the company's solvency ratio improved to 2.02 from 1.93 in December 2023, showing financial strength. This makes it an appealing option for those looking to invest in stocks.
Should you invest in stocks amid LIC's performance?
With LIC changing its product and channel mix to serve customers better, its long-term prospects look stable. The company's managing director and CEO reinforced its commitment to expanding insurance coverage across India.
A key initiative is the Bima Sakhi Yojana, launched on December 9, 2024, to empower women by offering them careers as insurance agents. So far, over 1.25 lakh women have registered, with more than 70,000 actively working as Bima Sakhis.
On February 10, 2025, at 1:45 PM, LIC shares dropped by nearly 1% to ₹811.55 each. For those looking to invest in stocks, LIC's strong market position and steady asset growth offer long-term potential. While short-term ups and downs happen, LIC's stability makes it a stock worth considering. As always, having a mix of investments is important when deciding where to invest in stocks.
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