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.

• Market share by first year premium income rose to 64.02% from 61.42% in Q1 FY24 and 58.87% for FY24, with individual and group business shares at 39.27% and 76.59% respectively.

• PAT for Q1 FY25 was INR 10,461 crore, up 9.61% year-over-year; Embedded Value reached INR 7,27,344 crore as of March 31, 2024.

• Non-par share of individual APE increased to 23.94% from 10.22% year-over-year, with non-par APE up 165.6%.

• Number of new policies sold grew 10.86% to 3.57 million; agency force increased 6% year-over-year to 1.42 million agents.

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.

• 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.

• Consolidated net premium income for Q1 FY25 was ₹114,230.24 crore, up from ₹98,755.22 crore in Q1 FY24.

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.

• Continued investment in omni-channel distribution and readiness for regulatory changes.

• Interim results are not necessarily indicative of full-year performance due to industry seasonality.