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Life Insurance Corp. Of India (LIC) has reported a significant rise in net profit for the fiscal year 2024, despite selling fewer policies compared to the previous fiscal year. The country’s largest state-run life insurer recorded a net profit of ₹40,676 crore in FY24, showing a 12% increase from the previous fiscal year. This increase in profit can be attributed to higher income from renewal premium, improved income from investment activities, and a slight rise in the value of new business.
Despite selling 20.39 million policies in FY24, slightly fewer than the previous fiscal year, LIC managed to maintain a strong financial position. The insurer also saw a decrease in total premium income from group businesses, as well as a decline in new business premium income in the individual segment during the fiscal year.
LIC officials highlighted that despite lower incomes from new businesses, the company earned more from renewal businesses, investments, and increasing value of new business, which contributed to the improved net profits. The insurer’s net value of new business grew by 4.66% in FY24, with the net VNB margin increasing by 60 bps to 16.8%.
Looking ahead to fiscal 2025, LIC aims to focus on increasing its market share across categories and enhancing margins in the business. The company plans to continue its strategic interventions to maximize market share and improve VNB margins and the proportion of non-participating policies.
Overall, LIC’s performance in FY24 reflects its resilience in the face of increased competition from private insurers. Despite challenges in the market, LIC remains a dominant player in the Indian life insurance sector, with a strong focus on sustainable growth and strategic initiatives to further strengthen its position in the industry.