Stock Price of Largest Insurance Provider Company in India Jumps Over 7 Per Cent After Posting Rs 48,151 Crore PAT in Q4FY25 Results

The stock was trading at Rs 929, up 6.5 per cent by 12:45 pm IST. Year-to-date, the stock has gained 4.11 per cent.

Share price of Life Insurance Corporation of India (LIC) surged over 7 per cent in early trade on strong quarterly and annual results for the financial year ended March 31, 2025. The stock was trading at Rs 929, up 6.5 per cent by 12:45 pm IST. Year-to-date, the stock has gained 4.11 per cent.

LIC reported a profit after tax (PAT) of Rs 48,151 crore for FY25, marking an 18.38 per cent rise over Rs 40,676 crore in FY24. For the March 2025 quarter, PAT stood at Rs 17,616.30 crore, up 40.66 per cent year-on-year from Rs 12,524.17 crore in the same period last year. The company announced a final dividend of Rs 12 per share for FY25, subject to shareholder approval.

Total premium income grew to Rs 4,88,148 crore in FY25 from Rs 4,75,070 crore in FY24. Individual premium income increased to Rs 3,19,036 crore, while group premium income declined slightly to Rs 1,69,112 crore. LIC maintained its dominant position in India’s life insurance sector with a 57.05 per cent market share in First Year Premium Income (FYPI), according to IRDAI. Its market share stood at 37.46 per cent in the individual segment and 71.19 per cent in the group segment.

LIC sold 1.78 crore individual policies in FY25, down from over 2.03 crore in FY24. On an Annualised Premium Equivalent (APE) basis, total premium was Rs 56,828 crore—67.25 per cent from the individual business and 32.75 per cent from the group business. Within the individual segment, participating (Par) products contributed Rs 27,636 crore (72.31 per cent), while non-participating (Non-Par) products contributed Rs 10,581 crore (27.69 per cent), up 50.28 per cent year-on-year. Non-Par APE share rose from 18.32 per cent in FY24 to 27.69 per cent in FY25.

Value of New Business (VNB) rose by 4.47 per cent to Rs 10,011 crore, with the VNB margin improving 80 basis points to 17.6 per cent. The solvency ratio improved to 2.11 from 1.98 a year ago. Persistency ratios remained stable, with 13th-month premium-based persistency at 74.84 per cent and 61st-month at 63.12 per cent. On a policy count basis, these were 64.12 per cent and 50.31 per cent, respectively.

Assets Under Management (AUM) increased by 6.45 per cent to Rs 54.52 lakh crore. The overall expense ratio declined by 315 basis points to 12.42 per cent. Investment yield (excluding unrealised gains) moderated to 8.65 per cent from 8.93 per cent in FY24. LIC distributed Rs 56,190 crore in bonuses to policyholders, compared to Rs 52,956 crore in the previous year.

Commenting on the performance, LIC’s CEO and MD Shri Siddhartha Mohanty noted that FY25 was both exciting and challenging due to regulatory adjustments. He highlighted several milestones including Rs 62,495 crore in Individual New Business Premium, Rs 10,011 crore in Net VNB, improved VNB margin, and a higher Non-Par share in the product mix. He affirmed LIC’s commitment to profitable growth and stakeholder trust.

LIC, the largest insurance provider in India, continues to dominate the life insurance market. The company offers a wide range of participating and non-participating products, including savings, term insurance, unit-linked plans, health insurance, annuities, and pension products.

Disclaimer: The article is for informational purposes only and not investment advice.