Individual New Business Premium of Rs. 62,495 crores, an increase of 8.28%
FinTech BizNews Service
Mumbai, May 27, 2025: The Board of Directors of Life Insurance Corporation of India (“LIC”) approved and adopted the standalone and consolidated financial results for the year ending March 31st, 2025. Below are the key highlights of our standalone results. The Profit after Tax (PAT) for the year ended March 31st 2025 was Rs. 48,151 crore as compared to Rs. 40,676 crore for the year ended March 31st 2024, thereby registering an increase of 18.38%. The Board of Directors have recommended a final dividend of Rs. 12/- per share for the financial year 2024-25 subject to approval of shareholders.
• Profit After Tax at Rs48,151 crores, an increase of 18.38% year on year
• Individual New Business Premium of Rs. 62,495 crores, an increase of 8.28%
• Bonus to policyholders at Rs. 56,190.24 crore
• Board recommends final dividend of Rs. 12/- Per Share
• Value of New Business (VNB) increased by 4.47% to Rs 10,011 crore.
• VNB Margin (Net) increased by 80 bps to 17.6%
• Non-Par APE share within Individual business grows by 937 bps to 27.69%.
• Non-Par APE increased by 50.28% to Rs 10,581 crore
• Expense Ratio reduces by 315 bps to 12.42% for FY25 from 15.57% for FY24
• Indian Embedded Value (IEV) increases by 6.81% to Rs 7,76,876 crore
• AUM increased by 6.45% to Rs 54,52,297 crore
• Solvency Ratio increased to 2.11 from 1.98
In terms of market share measured by First Year Premium Income (FYPI) (as per IRDAI), LIC continues to be the market leader by market share in Indian life insurance business with overall market share of 57.05%. For the year ended March 31st 2025, LIC had a market share of 37.46% in Individual business and 71.19% in the Group business.
The Total Premium Income for year ended March 31st 2025 was Rs. 4,88,148 crore as compared to Rs. 4,75,070 crore for the year ended March 31st 2024. The Total Individual Business Premium for the year ended March 31st 2025 increased to Rs. 3,19,036 crore from Rs. 3,03,768 crore for the comparable period of previous year.
The Group Business total premium income for year ended March 31st 2025 was Rs. 1,69,112 crore as compared to Rs 1,71,302 crore for the year ended March 31st 2024. A total of 1,77,82,975 policies were sold in the individual segment during the year ended March 31st, 2025 as compared to 2,03,92,973 policies sold during the year ended March 31st, 2024.
On an Annualized Premium Equivalent (APE) basis, the total premium was Rs 56,828 crore for the year ended March 31st 2025. Of this 67.25% (Rs. 38,218 crore) was accounted for by the Individual Business and 32.75% (Rs. 18,610 crore) by the Group Business.
Within the Individual Business, the share of Par products on APE basis was 72.31% (Rs. 27,636 crore) and balance 27.69% (Rs. 10,581 crore) was due to Non Par products. The Non Par APE has increased from Rs. 7,041 crore for the year ended March 31st, 2024 to Rs. 10,581 crore for the year ended March 31st 2025 registering a growth of 50.28%. Therefore, on an APE basis, our Non Par share of Individual business, which was 18.32% for the year ended March 31st, 2024 has grown to 27.69% for the year ended March 31st , 2025.
The Value of New Business (VNB) for the year ended March 31st, 2025 was Rs. 10,011 crore as compared to Rs. 9,583 crore for the year ended March 31st, 2024, registering a growth of 4.47%. The net VNB margin for the year ended March 31st, 2025 increased by 80 bps to 17.6% as compared to 16.8% for the year ended March 31st, 2024.
The Solvency Ratio as on March 31st 2025 increased to 2.11 as against 1.98 on March 31st, 2024. For the year ended March 31st 2025, the persistency ratios on premium basis for the 13th month and 61st month were 74.84% and 63.12% respectively.
The comparable persistency ratios for the corresponding year ended March 31st, 2024 were 77.66% and 60.88% respectively. For the year ended March 31st, 2025, the persistency ratios on number of policies basis for the 13th month and 61st month were 64.12% and 50.31%, respectively. The comparable persistency ratios for the corresponding period ended March 31st, 2024 were 66.99% and 48.59% respectively.
The Assets Under Management (AUM) increased to Rs. 54,52,297 crore as on March 31st 2025 as compared to Rs. 51,21,887 crore on March 31st, 2024 registering an increase of 6.45% year on year. The Overall Expense Ratio for the year ended March 31st, 2025 decreased by 315 bps to 12.42% as compared to 15.57% for the year ended March 31st, 2024.
The Yield on Investments on policyholders funds excluding unrealized gains was 8.65% for the year ended March 31st, 2025 as against 8.93% for year ended March 31st, 2024.
The amount of bonus allocated to policyholders is Rs. 56190.24 crore for the financial year 2024-25 as against Rs. 52,955.87 crore for the previous financial year 2023-24. LIC has achieved GUINNESS WORLD RECORDS Title for the “MOST LIFE INSURANCE POLICIES SOLD IN 24 HOURS” by selling 5,88,107 policies across India on 20th January, 2025.
After the launch of Bima Sakhi Yojana by Hon’ble Prime Minister on 9th Dec 2024, LIC has appointed 1,48,888 Bima Sakhis till 31st March 2025 who have sold 4,71,120 policies and have procured New Business Premium of Rs. 604.57 crore during the financial year ended 31st March 2025.
Shri Siddhartha Mohanty, CEO & M D, LIC said – “The year 2024-25 was a very exciting and challenging year for our business. After registering a very strong performance in the first six months, we had to redesign and relaunch products to comply with regulatory changes. However, we are very happy to state that this year, we have achieved many milestones. First, we have achieved Individual New Business Premium of Rs 62,495 crore, in a single year. Second, our Net VNB for the year is Rs 10,011 crore, i.e. over Rs 10,000 crore for the first time. Third, our VNB margin is steadily on the rise, reaching 17.6% as at 31st March 2025. Fourth, our strategy to increase Non Par share is further getting consolidated. This year, Non Par APE share within the individual business has risen to 27.69%. Finally, we are proud to say that we have declared bonus of Rs 56,190.24 crore to policyholders. We are thankful to all our stakeholders for their support and faith in us. We are committed to delivering profitable growth as we move ahead in our journey post listing.”
