Life Insurance Corporation of India (LIC), the country’s largest insurer, has reported a robust 38% rise in its net profit to Rs 19,013 crore for the fourth quarter ending March 2025, compared to Rs 13,763 crore in the same period last year.
The surge in profit was attributed to a reduction in management expenses. However, the insurer’s total income in Q4 saw a decline, dropping to Rs 2,41,625 crore from Rs 2,50,923 crore in the previous fiscal quarter, PTI reported.
Despite a slowdown in first-year premium income, which stood at Rs 11,069 crore (down from Rs 13,810 crore in Q4 FY24), LIC experienced a rise in renewal premiums, which increased to Rs 79,138 crore from Rs 77,368 crore last year.
LIC’s management expenses also witnessed a significant reduction, falling to Rs 16,495 crore from Rs 24,709 crore in the same quarter last year.
Siddhartha Mohanty, LIC’s MD & CEO, remarked, "The year 2024-25 was both exciting and challenging for our business. After a strong first half, we had to redesign and relaunch products to comply with regulatory changes."
On the subject of potential acquisitions, Mohanty stated that LIC is in the “advanced stage” of discussions regarding acquiring a stake in a standalone health insurer. The final proposal is expected to be presented to the board in the next 2-3 months.
For the entire financial year ending March 2025, LIC posted a profit of Rs 48,151 crore, an 18% increase from Rs 40,676 crore in FY24. The insurer's total income for the year climbed to Rs 8,84,148 crore, up from Rs 8,53,707 crore in the previous fiscal year.
LIC’s board has recommended a final dividend of Rs 12 per equity share for FY25, subject to shareholder approval at the upcoming Annual General Meeting (AGM).
The company made significant investments during the year, with Rs 1.85 lakh crore invested in equities, a 41% growth. Additionally, LIC purchased Rs 80,000 crore worth of corporate bonds and plans to continue investments depending on market conditions.
In terms of market leadership, LIC maintained a dominant position, with a market share of 57.05% based on First Year Premium Income (FYPI), as per the Insurance Regulatory and Development Authority of India (IRDAI). The company holds a 37.46% market share in individual business and 71.19% in group business.
LIC’s Assets Under Management (AUM) increased by 6.45%, reaching Rs 54,52,297 crore as of March 31, 2025, compared to Rs 51,21,887 crore the previous year. The insurer allocated a total bonus of Rs 56,190.24 crore to policyholders for FY25, compared to Rs 52,955.87 crore in FY24.
Additionally, LIC’s Solvency Ratio stood at 2.11, up from 1.98 the previous year, reflecting the insurer’s financial strength. The Value of New Business (VNB) also saw a healthy growth of 4.47%, reaching Rs 10,011 crore in FY25.
LIC launched the Bima Sakhi Yojana in December 2024, which has since led to the appointment of 1,48,888 Bima Sakhis who sold over 4.7 lakh policies. Furthermore, the company set a Guinness World Record in January 2025 for selling 5,88,107 policies in just 24 hours across India.
The surge in profit was attributed to a reduction in management expenses. However, the insurer’s total income in Q4 saw a decline, dropping to Rs 2,41,625 crore from Rs 2,50,923 crore in the previous fiscal quarter, PTI reported.
Despite a slowdown in first-year premium income, which stood at Rs 11,069 crore (down from Rs 13,810 crore in Q4 FY24), LIC experienced a rise in renewal premiums, which increased to Rs 79,138 crore from Rs 77,368 crore last year.
LIC’s management expenses also witnessed a significant reduction, falling to Rs 16,495 crore from Rs 24,709 crore in the same quarter last year.
Siddhartha Mohanty, LIC’s MD & CEO, remarked, "The year 2024-25 was both exciting and challenging for our business. After a strong first half, we had to redesign and relaunch products to comply with regulatory changes."
On the subject of potential acquisitions, Mohanty stated that LIC is in the “advanced stage” of discussions regarding acquiring a stake in a standalone health insurer. The final proposal is expected to be presented to the board in the next 2-3 months.
For the entire financial year ending March 2025, LIC posted a profit of Rs 48,151 crore, an 18% increase from Rs 40,676 crore in FY24. The insurer's total income for the year climbed to Rs 8,84,148 crore, up from Rs 8,53,707 crore in the previous fiscal year.
LIC’s board has recommended a final dividend of Rs 12 per equity share for FY25, subject to shareholder approval at the upcoming Annual General Meeting (AGM).
The company made significant investments during the year, with Rs 1.85 lakh crore invested in equities, a 41% growth. Additionally, LIC purchased Rs 80,000 crore worth of corporate bonds and plans to continue investments depending on market conditions.
In terms of market leadership, LIC maintained a dominant position, with a market share of 57.05% based on First Year Premium Income (FYPI), as per the Insurance Regulatory and Development Authority of India (IRDAI). The company holds a 37.46% market share in individual business and 71.19% in group business.
LIC’s Assets Under Management (AUM) increased by 6.45%, reaching Rs 54,52,297 crore as of March 31, 2025, compared to Rs 51,21,887 crore the previous year. The insurer allocated a total bonus of Rs 56,190.24 crore to policyholders for FY25, compared to Rs 52,955.87 crore in FY24.
Additionally, LIC’s Solvency Ratio stood at 2.11, up from 1.98 the previous year, reflecting the insurer’s financial strength. The Value of New Business (VNB) also saw a healthy growth of 4.47%, reaching Rs 10,011 crore in FY25.
LIC launched the Bima Sakhi Yojana in December 2024, which has since led to the appointment of 1,48,888 Bima Sakhis who sold over 4.7 lakh policies. Furthermore, the company set a Guinness World Record in January 2025 for selling 5,88,107 policies in just 24 hours across India.
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