Key Highlights
- Net profit climbed 5% to ₹10,987 crore.
- Net premium income rose 5% to ₹1.19 lakh crore.
- Solvency ratio improved to 2.17%.
- Gross NPAs fell 21%, net NPAs plummeted 36%.
Detailed Insights
LIC’s first‑quarter results reflected resilience in its core business even as new policy sales remained subdued, largely due to regulatory changes that lowered surrender charges for early exits. The company’s renewal premiums, especially from the growing segment of non‑participating policies, offset the dip in new bookings, sustaining a steady rise in net premium income.
The insurers’ financial armoury strengthened markedly: the solvency ratio surged from 1.99% to 2.17%, marking a healthier capacity to service long‑term liabilities. Risk‑management gains were evident in the sharp decline of gross NPAs (–21%) and net NPAs (–36%), which translated into a tighter NPA ratio of 1.42% versus 1.95% a year earlier.
LIC also deepened its market moat. With assets under management jumping 6.47% YoY to ₹57.05 lakh crore, it remains one of India’s largest institutional investors. Market share figures of 38.76% in individual business and 76.54% in group business underscore its penetration across both retail and corporate segments.
Key Concepts
- Net Premium Equivalent (APE) – a standardized measure of premium income across insured products.
- Solvency Ratio – the proportion of an insurer’s capital relative to the risk it holds.
- NPA (Non‑Performing Asset) – credit that is defaulted on, expressed as a percentage of total assets.
- AUM (Assets Under Management) – total market value of assets that an insurer manages on behalf of policyholders.
- Market Share – the insurer’s gross revenue or premium income relative to the entire market.