Life Insurance Corporation of India (LICI) Q3 24/25 earnings summary

Executive summary

• Total premium income for the nine months ended December 31, 2024, grew 5.51% year-over-year to INR 340,563 crore, with individual new business premium up 9.73% and group premium up 5.39%.

• Profit after tax rose 8.27% year-over-year to INR 29,138 crore, and net value of new business (VNB) increased 9.08% to INR 6,477 crore, with VNB margin improving by 50 bps to 17.1%.

• Embedded Value (IEV) rose 24.01% year-over-year to INR 8,21,716 crore as of Sep 2024.

• Non-par share of individual APE surged to 27.68% from 14.04% last year, reflecting a strategic shift in product mix.

• Maintains leadership as India's largest life insurer and fourth largest globally, with a diversified product portfolio and strong brand recognition.

Financial highlights

• Assets under management (AUM) grew 10.29% year-over-year to INR 54,77,651 crore.

• Solvency ratio improved to 2.02 from 1.93 a year ago.

• Overall expense ratio decreased by 231 bps to 12.97% year-over-year.

• Commission ratio slightly decreased to 5.16% from 5.48%.

• Claim settlement ratio (death) at 98.66%, up from 98.46% year-over-year.

Outlook and guidance

• Management remains cautiously optimistic for FY2025, expecting continued industry growth driven by rising insurance awareness and demand.

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

• Continued investment in digital transformation and readiness for regulatory changes.