Mumbai, May 27, 2024 – Life Insurance Corporation of India (LIC) has announced its impressive financial results for the year ending March 31, 2024, showcasing strong growth across various key metrics.
Key Financial Highlights
- Profit After Tax (PAT): LIC’s PAT surged to Rs. 40,676 crore, up from Rs. 36,397 crore in the previous year.
- Dividend: The Board has recommended a final dividend of Rs. 6 per share, in addition to the Rs. 4 interim dividend declared earlier, totaling Rs. 10 per share for FY 2024.
- Bonus to Policyholders: A significant bonus of Rs. 52,956 crore was allocated to participating policyholders.
- Indian Embedded Value (IEV): The IEV increased by 24.92%, reaching Rs. 7,27,344 crore.
- Assets Under Management (AUM): LIC’s AUM grew by 16.48%, amounting to Rs. 51,21,887 crore.
- Value of New Business (VNB): VNB saw a 4.66% rise, totaling Rs. 9,583 crore, with a net VNB margin increase to 16.8%.
Strategic Growth in Business Segments
LIC made notable progress in its non-participating (Non-Par) Annualized Premium Equivalent (APE) share within the individual business, which soared by 104.94% to Rs. 7,041 crore. The Non-Par APE share increased from 8.89% in FY 2023 to 18.32% in FY 2024.
The premium income for FY 2024 was Rs. 4,75,070 crore, a slight increase from Rs. 4,74,005 crore in the previous year. The individual business premium rose to Rs. 3,03,768 crore from Rs. 2,92,763 crore, while the group business premium was Rs. 1,71,302 crore compared to Rs. 1,81,242 crore last year.
Market Leadership and Strategic Initiatives
LIC continues to dominate the Indian life insurance market, holding a 58.87% overall market share. It boasts a 38.44% share in the individual business and an impressive 72.30% in the group business, based on First Year Premium Income (FYPI).
Siddhartha Mohanty, Chairperson of LIC, highlighted the strategic shifts in the product mix and the focus on enhancing business margins. “We have more than doubled our share of Non-par business within our business. Our strategic interventions aim to maximise market share across categories while continuing to create superior value for all stakeholders,” said Mohanty.
LIC is also undergoing key initiatives related to distribution channels and digital transformation, aiming to sustain its growth trajectory and enhance customer service.
Operational Efficiency and Solvency
LIC’s solvency ratio improved to 1.98 from 1.87, reflecting strong financial health. The persistency ratios, which measure policy renewal rates, also showed positive trends. On a premium basis, the 13th-month and 61st-month persistency ratios were 77.66% and 60.88%, respectively.
Despite a slight increase in the overall expense ratio to 15.57%, LIC maintained robust operational efficiency. The yield on investments in policyholders’ funds excluding unrealised gains was 8.93%, up from 8.29% last year.
Conclusion
LIC’s financial performance for FY 2024 underscores its robust market position and strategic growth initiatives. With a strong focus on product mix optimisation and digital transformation, LIC is well-positioned to continue its leadership in the Indian life insurance sector.
For more detailed financial information, please refer to LIC’s standalone financial results for the year ended March 31, 2024, available on the stock exchanges and the corporation’s website.
