LIC shares soar 8% in best session since Nov 2023 on Q4 results

Shares of Life Insurance Corporation rose over 8 per cent after its net profit for the January-March quarter of 2024-25 (Q4FY25) grew 38 per cent year-on-year (Y-o-Y).

LIC's stock rose as much as 8.81 per cent during the day to ₹948 per share, the best intraday gain since November 24, 2023. The stock pared gains to trade 7.6 per cent higher at ₹934 apiece, compared to a 0.33 per cent decline in Nifty50 as of 10:16 AM.

Shares of the company extended gains to their fourth day and have risen over 12 per cent from their recent lows of ₹840, which it hit earlier this month. The counter has risen by 4.4 per cent this year, compared to a 4.7 per cent advance in the benchmark Nifty50. LIC has a total market capitalisation of ₹5.8 trillion.

LIC Q4FY25 results

The state-owned life insurer's net profit for Q4FY25 grew 38 per cent Y-o-Y to ₹19,012 crore, supported by a steep decline in expenses for the company.

In Q4, the annualised premium equivalent (APE) dropped nearly 11 per cent to ₹18,853 crore from ₹21,180 crore in the year-ago period, while the value of new business premium (VNB) slipped 3.04 per cent Y-o-Y to ₹3,534 crore.

However, VNB margin measure of profitability of life insurance companies of the insurance company rose to 18.75 per cent in the quarter from 17.21 per cent in the year-ago period.

Net income from investments increased 10.31 per cent Y-o-Y to ₹93,132.67 crore in Q4FY25. The investment income was up 7.9 per cent Y-o-Y at ₹3.92 trillion in FY25.

LIC management commentary

During the post-earnings media call, LIC’s management said that the insurer had invested ₹1.85 trillion in equity markets in FY25, 41 per cent Y-o-Y higher than FY24 and has registered a profit of ₹73,000 crore from the equity market, up 19 per cent Y-o-Y.

“LIC has taken a lot of steps to improve the persistency, the results of which will be seen in the next year’s 13th month persistency. Also, after the coming in of new product regulations, there has also been major revamp in our product suite and the ticket size and premiums have changed and so there is focus given on improving persistency,” LIC’s management said in post earnings media call.

LIC dividend announcement

LIC’s board recommended a final dividend of Rs 12 per share for the financial year 2024-25, subject to the approval of shareholders.