LIC Ltd Q3 FY25 Results: Strong Net Profit Surges 17% YoY to ₹11,057 Cr

LIC Ltd Q3 FY25 Results: Strong Net Profit Surges 17% YoY to ₹11,057 Cr

LIC Ltd: Overview 

Life Insurance Corporation of India (LIC) is the largest life insurer in India, commanding a dominant position in the market. Established in 1956 by the Government of India through the nationalization of over 245 private insurers, LIC has played a pivotal role in shaping the Indian life insurance landscape. With an extensive distribution network of more than 1.4 million agents, numerous bancassurance partnerships, and a growing digital presence, LIC caters to millions of policyholders across urban and rural India. As of FY 2024, LIC manages assets worth over ₹45 lakh crore, making it one of the largest institutional investors in the country. Its business model revolves around a diversified product portfolio that includes individual life insurance, pension plans, annuities, ULIPs, health insurance, and group insurance schemes. The company also offers microinsurance products to serve the financially weaker sections of society. LIC’s AUM-to-GDP ratio is among the highest in the world, underscoring its importance in India’s financial system. The Indian life insurance sector is expected to experience robust growth, driven by rising disposable incomes, increasing financial awareness, and favourable regulatory initiatives. Currently, India’s life insurance penetration stands at approximately 3.2% of GDP, significantly lower than the global average, highlighting substantial growth potential. The post-pandemic era has reinforced the importance of life insurance as a financial protection tool, leading to higher demand for pure protection plans (term insurance), health-linked insurance, and retirement products. Additionally, the government’s initiatives, such as Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and tax incentives for insurance products, have boosted policy uptake across different income groups. 

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LIC has demonstrated strong financial performance, with the yield on investment (policyholders’ fund) recorded at 8.82% for the first nine months (9M) of FY25, compared to 9.14% in 9M FY24. A significant highlight of LIC’s financial trajectory is the surge in Indian Embedded Value (IEV), which increased by ₹159,111 crore from September 2023 to September 2024, reflecting a remarkable growth trajectory and strengthening LIC’s valuation in the industry. The company continues to dominate the life insurance sector, backed by its extensive agency network, which contributes 47.40% of the industry’s total agency force. LIC’s loyal and well-trained agency network is a blend of young and experienced professionals, ensuring widespread customer outreach. In 9M FY25, a total of 3,68,150 agents were trained, with a significant 77.40% of them falling within the 18-40 years age group, underscoring LIC’s focus on youth recruitment to drive future growth. Additionally, the launch of LIC’s Bima Sakhi Yojana by the Hon’ble Prime Minister on December 9, 2024, marked a major initiative to empower women in the insurance sector. Out of the total 7.45 lakh women agents in India, LIC holds a 42.67% share, reflecting its leadership in gender-inclusive employment. LIC has also maintained its exemplary claims management system, settling total death claims worth ₹17,588 crore in 9M FY25, up from ₹16,288 crore in 9M FY24. The death claim settlement ratio has improved to 98.66% in 9M FY25, compared to 98.46% in 9M FY24, reinforcing LIC’s commitment to efficient and reliable claim settlements. 

Business Segments

• Individual Life Insurance: LIC offers a broad range of individual life insurance products, including term insurance, endowment plans, whole-life policies, ULIPs, and money-back policies. These plans provide a combination of risk coverage and savings, catering to different financial needs. Popular policies like Jeevan Anand, Jeevan Umang, and Tech Term continue to be preferred choices among policyholders. 

• Group Insurance and Pension Plans: LIC dominates the group insurance segment, providing group term insurance, gratuity schemes, and superannuation plans to corporate and government organizations. Its pension and annuity products, such as Jeevan Akshay and Jeevan Shanti, help retirees secure a stable post-retirement income. The growing aging population and lack of adequate pension coverage in India make this segment a key growth driver for LIC. 

• Health Insurance: LIC’s health insurance segment includes policies like LIC Jeevan Arogya, which offers hospitalization benefits, critical illness cover, and family protection. With rising medical inflation and healthcare costs, LIC is expected to expand its health insurance offerings further. 

• Microinsurance and Rural Policies: To ensure financial inclusion, LIC has introduced low-premium, high-coverage insurance plans targeted at low-income groups and rural populations. Policies like LIC Bhagya Lakshmi and LIC New Jeevan Mangal provide affordable life coverage, supporting the government’s vision of universal financial protection. 

Subsidiary Information

• LIC Housing Finance Ltd. (LIC HFL): LIC HFL is one of India’s leading housing finance companies, providing home loans, project financing, and loans against property. With a strong nationwide presence, the subsidiary plays a vital role in India’s real estate financing sector. LIC’s association with the brand enhances customer trust, making LIC HFL a preferred choice for homebuyers. 

• LIC Mutual Fund Asset Management Ltd: LIC’s mutual fund arm offers diverse investment solutions, including equity, debt, hybrid, and tax-saving funds (ELSS). The subsidiary capitalizes on LIC’s brand recognition to attract retail and institutional investors looking for long-term wealth creation opportunities. 

• LIC Pension Fund Ltd: LIC Pension Fund manages National Pension System (NPS) investments, serving government employees and private sector participants. With India’s increasing focus on retirement planning, this subsidiary is expected to play a crucial role in the country’s pension market. 

• LIC Cards Services Ltd: A relatively newer subsidiary, LIC Cards Services Ltd. has entered the credit card market in partnership with IDBI Bank, offering insurance-linked benefits and targeting LIC’s existing policyholders to expand its customer base. 

• LIC International: LIC has expanded internationally through joint ventures in Bangladesh, Nepal, Sri Lanka, and the UAE, offering customized life insurance solutions to the South Asian market. These subsidiaries contribute to LIC’s global growth strategy and revenue diversification. 

Q3 FY25 Earnings 

• Revenue of ₹203751 crore in Q3 FY25 down by 4.8% YoY from ₹214054 crore in Q3 FY24.  

• EBITDA of ₹11395 crore in this quarter at a margin of 6% compared to 4% in Q3 FY24. 

• Profit of ₹11009 crore in this quarter compared to a ₹9434 crore profit in Q3 FY24. 

Financial Summary 

Amount in ₹ Cr	Q3 FY24	Q3 FY25	FY23	FY24
Revenue	214054	203751	784628	845966
Expenses	204815	192356	750420	813188
EBITDA	9239	11395	34207	32779
OPM	4%	6%	4%	4%
Other Income	206	818	7800	14829
Net Profit	9434	11009	35997	40916
NPM	4.4%	5.4%	4.6%	4.8%
EPS	14.9	17.4	56.9	64.5