Life Insurance Corporation of India (LIC) has announced a record net profit of ₹48,151 crore for the financial year 2024–25 (FY25), marking an 18.38% increase from ₹40,676 crore in FY24. This significant growth underscores LIC’s robust operational performance and strategic initiatives.
📈 Financial Highlights
- Total Premium Income: ₹4,88,148 crore in FY25, up from ₹4,75,070 crore in FY24.
- Individual Business Premium: ₹3,19,036 crore, reflecting a 5% year-on-year increase.
- Group Business Premium: ₹1,69,112 crore, a slight decrease from ₹1,71,302 crore in the previous year.
- Assets Under Management (AUM): ₹54.5 lakh crore, up 6.45% from ₹51.2 lakh crore in FY24.
- Solvency Ratio: Improved to 2.11 from 1.98, indicating enhanced financial stability.
💰 Dividend Announcement
LIC’s Board has recommended a final dividend of ₹12 per equity share for FY25, subject to shareholder approval at the upcoming Annual General Meeting. The record date for determining shareholder eligibility is set for July 25, 2025.
🛡️ Policyholder Benefits
- Bonuses Allocated: ₹56,190 crore distributed to policyholders, up from ₹52,956 crore in FY24.
- Persistency Ratios: 13th-month ratio at 74.84%, and 61st-month ratio at 63.12%, indicating strong policyholder retention.
📊 Business Performance
- Individual New Business Premium (NBP): ₹62,495 crore, an 8.28% increase year-on-year.
- Value of New Business (VNB): ₹10,011 crore, up 4.47% from ₹9,583 crore in FY24.
- VNB Margin: Improved to 17.6% from 16.8%, reflecting better profitability on new business.
- Non-Participating (Non-Par) Products: Annualized Premium Equivalent (APE) from non-par products grew by 50.28% to ₹10,581 crore.
🏆 Notable Achievements
- Guinness World Record: LIC set a record by selling 5,88,107 life insurance policies in a single day on January 20, 2025.
- Bima Sakhi Yojana: Under this initiative, 1,48,888 Bima Sakhis were appointed, who collectively sold 4,71,120 policies, generating ₹604.57 crore in new business premium.
🔮 Strategic Outlook
LIC is exploring the acquisition of a controlling stake in a standalone health insurance company, with a decision expected in the next 2–3 months. This move aims to diversify LIC’s portfolio and strengthen its position in the health insurance sector.The Times of India
