The twenty-two LIC’s proposed private life insurance players have increased by 17 percent to ₹ 11,056 crore in the October-December quarter for the fiscal 2024-25 (Q3FY25) against ₹ ₹ 9,444.42 crore during the same period in the previous year. The increase in the net profit of the largest state-run insurer in India was due to a decline in the cost of employee expenses. However, its profit expected from new premiums was lower.
For the same period during the current fiscal, the company’s net premium income stood at ₹1,06,891 crore, slightly down from ₹1,17,017 crore in the same period of the previous year.
Total Income also reduced to ₹2,01,994 crore in the latest December quarter from the level of ₹2,12,447 crore in the same period the previous year.
Key Financial Metrics (As Of February 5, 2025)
- Market Cap: ₹524,089.31 Cr
- 52 Week High: ₹1,221.50
- 52 Week Low: ₹804.60
- P/E Ratio: 12.62
- P/B Ratio: 5.37
LIC Q3 Results: Key Metrics
The new regulation put constraints on the sales of policies in the quarter through cutting the charges policyholders incurred if policy was to be terminated before maturity.
The insurer had recorded high sales prior to when the norm seeking to change was effected in October. On the same note, LIC has been expanding the premium of high-margin policies.
This was because the percentage of such policies sold through LIC increased to 27.7% in the December quarter compared to 26.3% in the September quarter. This is also reflected in the value of new business (VNB), which represents the expected amount of profit from new premiums done by LIC, declining by 27% YoY to ₹1,926 crore.
The lower value of VNB may affect the insurer’s profit in the next quarterly periods. Solvency is calculated on the ability of an insurer to meet its long-term liability and it increased to 2.02 in the quarter under review from 1.93 in the same period in the previous year and 1.98 in the previous quarter.