LIC’s Net Profit Jumps 38% In March Quarter On Lower Employee Costs

Life Insurance Corp of India Ltd. posted a 38.2% rise in net profit for the March quarter to ₹190.13 billion, helped by lower employee expenses and net commissions. Sequentially, profit surged 72%.

Employee remuneration and welfare expenses more than halved to ₹59.28 billion from ₹137.50 billion a year ago. Net commission fell 6.5% to ₹77.11 billion. Management expenses were down 33% to ₹164.95 billion.

Net premium income declined slightly by 3.1% on year to ₹1.48 trillion, while other income dropped sharply to ₹2.22 billion from ₹141.61 billion. Shares ended 0.1% higher at ₹871.25 on the NSE.

LIC declared a final dividend of ₹12 per share for 2024-25. Assets under management rose 6.5% to ₹54.52 trillion as of 31 March. The solvency ratio improved to 2.11 times, above the 1.50 regulatory requirement.

The 13th-month persistency ratio fell to 68.62% from 71.86% a year ago, but the 61st-month ratio rose to 58.54% from 54.48%.
For 2024-25, LIC’s value of new business increased 4.5% to ₹100.11 billion, with the new business margin up to 17.6% from 16.8% in 2023-24.

Annual net profit rose 18.4% to ₹481.51 billion, while net premium income increased to ₹4.88 trillion from ₹4.75 trillion. Expense ratio improved to 12.42% from 15.57% due to an 18% decline in management expenses.