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%.

• Market share increased to 61.07% for H1FY25 from 58.50% in H1FY24, with 68.72% share in individual policies, reinforcing leadership.

• Non-Par share of individual APEE surged to 26.31% from 10.76% year-over-year, reflecting a strategic shift in product mix.

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

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

Financial highlights

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

• Group business premium reached INR 88,975 crore, up from INR 70,977 crore.

• Annualized premium equivalent (APEE) for H1FY25 was INR 28,025 crore, with individual APEE at INR 18,163 crore.

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

• Solvency ratio improved to 1.98 from 1.90 year-over-year.

Outlook and guidance

• Management expects continued growth in Non-Par business and aims to sustain market share gains.

• Strategic focus on digital transformation, product mix diversification, and maximizing investment yield.

• Anticipates normalization of business momentum after initial adjustment to new product regulations.

• Interim results are subject to seasonality and may not reflect full-year trends.

• Focus remains on sustainable growth, cost control, and adapting to regulatory changes.