LIC Q1 results: Life Insurance Corporation of India (LIC) on Thursday, August 8 announced its April-June quarter results for the financial year 2024-25 (Q1FY25) with a nine percent rise in consolidated net profit to ₹ An increase of Rs 10,544 crore was recorded. Total income of India’s largest insurer rose to ₹2,10,910 crore during the latest June quarter, compared to ₹1,88,749 crore in the year-ago period.
The life insurance giant’s first-year premium rose to ₹7,470 crore in the June quarter, compared to ₹6,811 crore in the year-ago period. LIC earned ₹56,429 crore from renewal premium, compared to ₹53,638 crore a year ago.
LIC Q1 results: Key metrics
The state-owned insurer’s rise in net profit in the June quarter was helped by growth in sales of high-margin non-participating policies and strong growth in its group business. Net income from investments rose to ₹96,183 crore during the June quarter, compared to ₹90,309 crore in the year-ago period.
Total premium income of the group business grew 30.9 percent year-on-year (YoY) during the quarter. Group insurance covers people in a single plan and is generally taken up by companies to provide insurance cover for their employees.
The insurer is focusing on increasing the share of high-margin non-participating policies in the total policies sold. On an annual premium equivalent (APE) basis, the insurer’s share in non-participating policies in its individual business rose to 23.94 percent from 10.22 percent a year ago.
APE, a key metric for insurers, is a gauge of sales that gives the annual total value of all single premium and recurring premium policies. Its value of new business (VNB), which measures expected profits from new premiums, rose 23.7 percent year-on-year in the June quarter. Net VNB margin for the period improved to 13.9 percent from 13.7 percent a year ago.
