August 8, 2025

Life Insurance Corporation of India (LIC) brought some exciting news for its fans this quarter! The company reported a cool 5% rise in net profit for the first quarter, reaching Rs 10,987 crore. But that's not all—the net premium income also grew by 5% to Rs 1.19 lakh crore, led by both individual and group business premiums. LIC didn’t just grow; it dominated! Holding a whopping 63.51% share in First Year Premium Income (FYPI), LIC stayed top dog in the insurance crowd, as per IRDAI data. Digging into numbers, individual business premiums rose 6% to Rs 71,474 crore, while group business premiums went up by 2.46% to Rs 47,726 crore. However, the number of individual policies sold dipped by about 14.75%, falling to 30.39 lakh in this quarter. On the Annualized Premium Equivalent (APE) side, premiums totaled Rs 12,652 crore, with individual businesses making up 56% (Rs 7,061 crore) and the rest from group business. One of the hottest trends was LIC’s Non-Par products, surging an impressive 33% to Rs 2,142 crore, boosting their market share to over 30%. The Value of New Business (VNB)—a key profitability measure—jumped by 21% to Rs 1,944 crore. Even better, the VNB margin expanded by 150 basis points to 15.4%, showing LIC’s smart product mix and improved profits. LIC’s assets under management (AUM) also grew by 6% to Rs 57.05 lakh crore. The expense ratio improved by 140 basis points to 10%, and the investment yield was 8.45%, just a tiny dip from last year's 8.54%. Persistence, or how many customers stay on, had mixed results: the 13th-month persistency ratio dropped to 75.63% from 78.23%, but the 61st-month ratio improved to 63.85% from 61.62%. LIC MD and CEO R Doraiswamy said, “The growth in non-par products, VNB margins, and bancassurance share reflects strong execution of the company’s strategic priorities.” Also, the company empowered more women, appointing over 1.99 lakh Bima Sakhis by June 30, who together sold more than 3.26 lakh policies just in this quarter. In the stock market, LIC shares closed 0.7% down at Rs 886 on the NSE on Thursday, but the company’s strong business beats many doubts. LIC’s magic in the insurance world continues to sparkle, proving why it’s the giant leader!

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Tags: Lic, Q1 results, Net profit, Premium income, Insurance market, Vnb,