LIC shares in focus after it reports Q1 results; PAT rises 10%, AUM increases to Rs 53,58,781 crore

Shares of Life Insurance Corporation (LIC) will be in focus on Friday (August 9), a day after the company reported Q1FY25 results.

On Thursday, after market hours, the state-owned life insurance behemoth reported a 10 per cent rise in its net profit to Rs 10,461 crore in the June 2024 quarter.

LIC had a net profit of Rs 9,544 crore in the year-ago period.

The total income increased to Rs 2,10,910 crore during the latest June quarter as against Rs 1,88,749 crore in the year-ago period.

The company's Assets Under Management (AUM) increased to Rs 53,58,781 crore as of June 30 as compared to Rs 46,11,067 crore at the end of the same quarter the previous year, registering an increase of 16.22 per cent.

The total premium income for the quarter increased by 16 per cent to Rs 1,13,770 crore as compared to Rs 98,363 crore in the same quarter a year ago.

During the quarter under review, the first-year premium rose to Rs 7,470 crore as against Rs 6,811 crore in the year-ago period, it said.

The insurer earned Rs 56,429 crore from renewal premiums as against Rs 53,638 crore a year ago.

Net income from investments during the quarter rose to Rs 96,183 crore as compared to Rs 90,309 crore in the April-June period of previous fiscal.

During the last financial year, LIC invested Rs 1.32 lakh crore in the equity market, he said, adding, that during the first quarter of the current financial year, the investment was Rs 38,000 crore as against Rs 23,300 crore in the same period a year ago.

The Value of New Business (VNB) was Rs 1,610 crore as compared to Rs 1,302 crore for the quarter ended June 30, 2023, registering a growth of 23.66 per cent. The net VNB margin for the quarter ended June 30, 2024 increased by 20 bps to 13.9 per cent as compared to 13.7 per cent in the same quarter a year ago.

The solvency margin of LIC increased to 1.99 per cent as compared to 1.89 per cent in the same quarter a year ago.

On the asset quality front, gross non-performing assets ratio eased to 1.95 per cent from 2.48 per cent in the same period a year ago.

Commenting on its Bangladesh operation, MD and CEO Siddhartha Mohanty, LIC said the branch of Bangladesh Ltd. has partially resumed operations with effect from August 8, 2024.

The situation in Bangladesh has still not reached the stage of normalcy and may continue to hamper the operations, he said.

LIC is in touch with its local staff and also apprised of the situation to the Department of Financial Services, he said.

LIC share price: Past performance

Shares of LIC gained over 74 per cent in a year against Nifty50's rise of 22 per cent. 

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