Life Insurance Corporation of India (LICI) Q1 24/25 earnings summary

Executive summary

• Total premium income for Q1 FY25 rose 15.66% year-over-year to INR 113,770 crore, with strong growth in both individual and group segments.

• Profit after tax increased 9.61% year-over-year to INR 10,461 crore.

• Market share by first year premium income improved to 64.02% in Q1 FY25, with policy market share at 66.54%.

• Embedded Value rose to INR 7,27,344 crore as of March 31, 2024.

• Board approved unaudited standalone and consolidated financial results for Q1 FY25 and appointed a new Secretarial Auditor.

Financial highlights

• Individual new business premium income grew 13.67% year-over-year to INR 11,892 crore.

• Group business premium income surged 30.87% year-over-year to INR 46,578 crore.

• Annualized premium equivalent (APE) for Q1 FY25 was INR 11,560 crore; individual APE at INR 6,747 crore and group APE at INR 4,813 crore.

• Value of new business (VNB) increased 23.66% year-over-year to INR 1,610 crore; VNB margin improved by 20 bps to 13.9%.

• Assets under management grew 16.22% year-over-year to INR 5,358,781 crore.

Outlook and guidance

• Focus remains on regaining market share, optimizing product and channel mix, and improving margins.

• Digital transformation, omni-channel distribution, and new product launches are expected to drive future growth.

• Management targets sustainable VNB margin growth, aiming for 20%+ in the medium term.

• Results for the interim period are not necessarily indicative of full-year performance due to industry seasonality.