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

Executive summary

• Total premium income for nine months ended Dec 31, 2024, grew 5.51% year-over-year to INR 340,563 crore, maintaining leadership as India's largest life insurer and fourth largest globally.

• Individual new business premium rose 9.73% year-over-year; group business premium increased 5.39%.

• Profit after tax for the period was INR 29,138 crore, up 8.27% year-over-year.

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

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

Financial highlights

• Net VNB for nine months was INR 6,477 crore, up 9.08% year-over-year; VNB margin improved by 50 bps to 17.1%.

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

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

• Expense ratio decreased to 12.97% from 15.28% year-over-year.

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

Outlook and guidance

• Cautiously optimistic for the remainder of 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.

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