State-run Life Insurance Corporation on Thursday reported a 9% increase in standalone net profit for the first quarter at Rs 10,461 crore, beating Bloomberg analyst estimates of Rs 10,212 crore.
The life insurance behemoth posted a net profit of Rs 9,544 crore for the corresponding quarter of the previous year. The insurer’s net premium income rose 16% to Rs 1.14 trillion in Q1FY25 compared to Rs 98,363 crore in Q1FY24.
The total annualised premium equivalent (APE) grew by 21% to Rs 11,560 crore from Rs 9,532 crore in the year-ago quarter. The value of new business (VNB) for the quarter ended June 2024 stood at Rs 1,610 crore compared to Rs 1,302 crore for the quarter ended June 2023, registering a growth of 23.66%.
The solvency ratio as of June 2024 increased to 1.99 as against 1.89 in June 2023.
“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 previous year and 58.87% for the full year ended March 31, 2024,” Siddhartha Mohanty, CEO & MD, LIC, said in an earnings release.
He said the momentum around increasing share of non-par products within individual segment continues and 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.
The company said the operations of LIC of Bangladesh have partially resumed Thursday.
“The situation in Bangladesh has still not reached the stage of normalcy and may continue to hamper the operations,” the life insurer added in a regulatory filing. Earlier this week, the state-run insurer said that the office of LIC of Bangladesh Ltd. will remain closed during the period from August 5 to 7 due to the prevailing socio-political situation in Bangladesh.
Shares of LIC closed flat at Rs 1,124 on the National Stock Exchange on Thursday.