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

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