Shares of Life Insurance Corporation of India (LIC) jumped over 6% following the announcement of robust Q4 FY25 earnings. As of 9:42 AM, the shares were trading 6.05% higher at Rs 923.85
The insurer posted a 38% year-on-year increase in net profit for the quarter ended March 2025, rising to ₹19,013 crore from ₹13,763 crore a year earlier.
Despite a slight dip in total income to ₹2.41 lakh crore (from ₹2.51 lakh crore YoY), strong bottom-line growth, cost efficiency, and improved margins bolstered investor sentiment. LIC’s board also declared a final dividend of ₹12 per share, further enhancing shareholder value.
Policyholders will benefit as well, with LIC declaring a bonus of ₹56,190 crore. The Value of New Business (VNB) grew 4.47% to ₹10,011 crore, while VNB margin rose 80 basis points to 17.6%.
A notable highlight was the 50.28% surge in Non-Par Annualized Premium Equivalent (APE) to ₹10,581 crore, now forming 27.69% of individual business—up 937 basis points YoY. This shift signals a focus on high-margin segments.
Operational efficiency improved as the expense ratio dropped to 12.42% from 15.57% in FY24. Indian Embedded Value (IEV) climbed 6.81% to ₹7.77 lakh crore, and Assets Under Management (AUM) grew to ₹54.52 lakh crore, up 6.45%.
The solvency ratio also improved to 2.11, reflecting stronger financial stability. For FY25, LIC reported a full-year PAT of ₹48,151 crore, up 18.38%, while individual new business premium grew 8.28% to ₹62,495 crore.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
