LIC stock price soars: Shares of Life Insurance Corporation of India surged up to 3 per cent at Rs 1,159.60 per share on the BSE in Friday’s early morning deals. This came after the country’s biggest life insurer delivered its quarterly earnings for the April-June quarter of financial year 2024-25 (Q1FY25).
On Thursday, state-owned LIC reported a 9 per cent increase in consolidated net profit, reaching Rs 10,544 crore for Q1FY25, up from Rs 9,635 crore in the same quarter last year.
The insurer’s net premium income rose by 16 per cent to Rs 1.14 trillion in Q1FY25, compared to Rs 98,755 crore in Q1FY24. The company’s solvency ratio improved to 1.99 per cent from 1.89 per cent in the corresponding quarter of the previous year. LIC’s gross non-performing asset (GNPA) ratio decreased to 1.95 per cent from 2.48 per cent last year.
Further, new business premium income for individual policies grew by 13.67 per cent to Rs 11,892 crore. The overall annual premium equivalent (APE) jumped 21.28 per cent to Rs 11,560 crore.
The value of new business grew by 24 per cent to Rs 1,610 crore, with the VNB margin (net) improving by 20 basis points to 14 per cent.
The assets under management (AUM) increased to Rs. 53,58,781 crore as on June 30th, 2024 as compared to Rs. 46,11,067 crore on June 30th, 2023 registering an increase of 16.22 per cent year on year.
“During the first quarter of this financial year, our market share increased to 64.02 per cent as compared to 61.42 per cent for the same quarter of previous year and 58.87 per cent 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,” said Siddhartha Mohanty, CEO and MD, LIC.
He added that while achieving these growth parameters LIC’s margin remained stable and expenses ratio declining by 98 basis points to 11.87 per cent in the June quarter
At 10:03 AM; the stock price of the company was trading 0.82 per cent higher at Rs 1,134.90 per share on the BSE. By comparison the BSE Sensex surged by 1.06 per cent at 79,723 levels.
First Published: Aug 09 2024 | 10:16 AM IST
