LIC share price surges nearly 6% after March quarter profit jumps 38%

LIC post market hours on Tuesday, May 28, reported net profit of ₹19,013 crore, marking an increase of 38% from ₹13,763 crore in the corresponding quarter a year earlier. The total income of the insurer during the reporting quarter declined to ₹2,41,625 crore from ₹2,50,923 crore in the same period of the preceding fiscal, LIC said in a regulatory filing.

LIC’s income from first-year premium also moderated to ₹11,069 crore in the January-March quarter against ₹13,810 crore in the same period of the preceding fiscal.

However, the income from renewal premiums in the reporting period rose to ₹79,138 crore compared to ₹77,368 crore a year ago.

At the same time, expenses of management came down to ₹16,495 crore from ₹24,709 crore in the same period a year ago.

For the year ended March 31, 2025, LIC had a market share of 37.46% in individual business and 71.19% in group business.

The Assets Under Management (AUM) increased to ₹54,52,297 crore as of March 31, 2025, as compared to ₹51,21,887 crore on March 31, 2024, registering an increase of 6.45% year on year.

The amount of bonus allocated to policyholders is ₹56,190.24 crore for the financial year 2024-25 as against ₹52,955.87 crore for the previous financial year 2023-24.

The Solvency Ratio as on March 31, 2025, increased to 2.11 as against 1.98 on March 31, 2024.

The Value of New Business (VNB) for the year ended March 2025 was ₹10,011 crore as compared to ₹9,583 crore in FY24, registering a growth of 4.47%.

The net VNB margin for FY25 increased by 80 bps to 17.6% as compared to 16.8% for the year ended March 31, 2024.

"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," LIC MD and CEO Siddhartha Mohanty said during media interaction post-announcement of financial numbers.

After the launch of Bima Sakhi Yojana by Prime Minister Narendra Modi on December 9, 2024, LIC has appointed 1,48,888 Bima Sakhis till March 31, 2025, who have sold 4,71,120 policies and have procured New Business Premium of ₹604.57 crore during the financial year ended March 31, 2025, he said.

As of 9:36 am, LIC shares traded 5.61% higher at ₹920, outperforming the NIFTY Next50 index which was trading on a flat note. The stock was also the top gainer among the futures and options (F&O) shares.