State-run Life Insurance Corporation of India on August 8 reported 9 percent rise in consolidated net profit at Rs 10,544 crore for the quarter ended June 30, 2024, It reported consolidated net profit of Rs 9,635 crore in the year-ago period.
On August 8, LIC's shares on BSE closed nearly flat at Rs 1,124 apiece.
The insurer's net premium income rose 16 percent to Rs 1.14 lakh crore in Q1FY25 as compared to Rs 98,755 crore in Q1FY24.
Solvency ratio of the insurer was at 1.99 percent compared to 1.89 percent in the corresponding quarter last year. The gross non-performing asset quality (GNPA) of LIC for the quarter was at 1.95 percent compared to 2.48 percent last year.
New Business Premium Income (Individual) increased by 13.67 percent to Rs. 11,892 crore. Overall annual premium equivalent (APE) jumped 21.28 percent to Rs. 11,560 crore. Individual Business Non-Par APE increased by 166 percent to Rs 1,615 crore.
Group Business APE increased by 34 percent to Rs. 4,813 crore. Non-Par APE share within Individual business at 24 percent for Q1 FY25 as compared to 10.22 percent in Q1 FY24. Value of New Business (VNB) increased by 24 percent to Rs 1,610 crore. VNB Margin (Net) increased by 20 bps to 14 percent.
Chief executive officer and managing director (CEO and MD) Sidhartha Mohanty said the insurer sold 10.86 percent more policies in Q1FY25 versus last year.
"Total of 35,65,519 policies were sold in the individual segment during the quarter ended June 30th, 2024 as compared to 32,16,301 policies sold during the quarter ended June 30th 2023 registering a growth of 10.86 percent," Mohanty said at the post results media conference.
Persistency ratio for 13th month was at 72.35 percent compared to 75.10 percent. And for the 61st month was at 58.41 percent versus 59.25 percent.
In another exchange filing, the country's largest insurer said that its office in Bangladesh has partially resumed operations, while adding that the situation in the country has yet to reach normalcy.
"LIC of Bangladesh Ltd. has partially resumed operations with effect from August 08, 2024. The situation in Bangladesh has still not reached the stage of normalcy and may continue to hamper the operations. Till the time the normalcy is restored, the impact of the situation cannot be ascertained," LIC said in an exchange filing.
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