Life Insurance Corporation of India (LIC) has released its consolidated financial results for Q2 FY25, reporting mixed performance across key metrics. The company saw an increase in net premium income, while profit after tax (PAT) experienced a slight decline compared to the same period last year.
Key Financial Highlights:
- Net Premium Income: LIC reported a net premium income of ₹1,20,325.66 crore, marking an 11.5% growth from ₹1,07,876.8 crore in Q2 FY24. This rise highlights LIC’s ability to attract new business and retain existing policyholders amid a competitive market.
- Profit After Tax (PAT): The PAT for Q2 FY25 stood at ₹7,728.68 crore, reflecting a 3.8% decrease from ₹8,030.28 crore in the previous year. This slight dip in profitability could be due to higher expenses or shifts in the investment portfolio’s returns.
- Persistency Ratios:
- The 13-month persistency ratio, which measures policy renewals within the first 13 months, was recorded at 68.17%, down from 71.19% in the prior year.
- The 61-month persistency ratio saw a minor decrease to 54.76% from 55.17% in Q2 FY24. Both ratios indicate slight declines in policyholder retention over these periods.
- Solvency Ratio: LIC maintained a solid solvency ratio of 1.98%, showing improvement from 1.90% YoY. This ratio is a critical metric for insurers, indicating the company’s capacity to meet its long-term financial obligations.
