Life Insurance Corporation of India (LICI) Q2 24/25 earnings summary

Executive summary

• Total premium income for H1FY25 rose 13.56% year-over-year to INR 233,671 crore, with individual new business premium up 17.29% and group premium up 25.36% year-over-year.

• Market share increased to 61.07% for H1FY25 from 58.50% in H1FY24, with strong leadership in both individual and group segments.

• Embedded Value (IEV) rose 24.01% year-over-year to INR 821,716 crore as of September 2024.

• PAT grew 3.51% year-over-year to INR 18,082 crore; VNB increased 37.74% to INR 4,551 crore, with VNB margin up 160 bps to 16.2%.

• Focused on digital transformation, operational efficiency, and expanding omni-channel distribution.

Financial highlights

• Renewal premium income in individual business rose to INR 115,158 crore from INR 109,599 crore year-over-year.

• Total individual premium income (including renewal) grew 7.35% year-over-year to INR 144,696 crore.

• Group business new business premium reached INR 86,056 crore, up from INR 67,505 crore year-over-year.

• Assets under management rose 16.78% to INR 55,39,516 crore.

• Consolidated net profit after tax for H1 FY25 was INR 18,273.01 crore, compared to INR 17,665.27 crore in H1 FY24.

Outlook and guidance

• Management expects continued momentum in Non-Par business and product mix shift.

• Strategic focus on increasing market share, diversifying product mix with higher non-par share, and maximizing investment yield while balancing risk.

• Some short-term impact on new business volumes in October anticipated due to product transition, but confidence in recovery.