LIC shares gain over 2% after insurance behemoth reports 10% YoY rise in PAT

Shares of Life Insurance Corporation of India (LIC) were on investors' radar on Friday, August 9, a day after the company reported its June quarter (Q1 FY25) results.

The state-owned life insurer on Thursday reported a 10% rise in its net profit to ₹10,461 crore in the June 2024 quarter.

In the opening deals, the stock was trading over 2% higher at ₹1,153.35 on the BSE.

The life insurance behemoth reported a net profit of ₹9,544 crore in the year-ago period.

The insurer earned ₹56,429 crore from renewal premiums as against ₹53,638 crore a year ago. Net income from investments during the quarter rose to ₹96,183 crore as compared to ₹90,309 crore in the April-June period of the previous fiscal.

The solvency margin of LIC increased to 1.99% as compared to 1.89% in the same quarter a year ago.

Siddhartha Mohanty, CEO & MD, LIC, said, “During the first quarter of this financial year, our market share increased to 64.02% as compared to 61.42% for the same quarter of the previous year and 58.87% for the full year ended March 31, 2024. LIC is progressing on its stated objective of gaining market share after having focused, during the last year, on consolidating changes in product mix, channel mix, and margin improvement."

The MD added, "The momentum around increasing share of non-par products within the individual segment continues, and our non-par share, on an APE basis, within the individual business has increased to 23.94% in the first quarter of FY25 as compared to 10.22% for the same quarter last year."

LIC stock performance

Shares of the company have increased by over 79% in the past 12 months. In comparison, the benchmark NIFTY50 has risen by over 24%.