Life Insurance Corporation of India (LIC), the nation’s largest and most trusted insurer, has wrapped up the financial year 2024–25 on a high note. Its recently announced quarterly and full-year results reveal a powerful surge in profitability, a generous dividend payout, and continued value delivery to its vast base of policyholders. The numbers reflect a strong operational performance amid a changing regulatory landscape and show why LIC remains the cornerstone of India’s life insurance sector.
Q4 FY25: A Record-Breaking Finish
In an impressive show of financial strength, LIC reported a 38% year-on-year rise in consolidated net profit for the quarter ended 31 March 2025, clocking in at ₹19,039 crore. Some sources note a marginal difference, pegging the profit at ₹19,013 crore, still representing a robust increase over ₹13,763 crore in Q4 FY24.
Even more striking is LIC’s sequential growth, with profit after tax (PAT) jumping 73% compared to the previous quarter (₹11,009 crore in Q3 FY25). This significant acceleration in quarterly performance underscores LIC’s financial resilience and adaptability.
Full-Year Highlights: Profitability Continues to Climb
For the entire financial year, LIC posted a PAT of ₹48,151 crore, an 18% increase over the previous year. This sustained profitability showcases the effectiveness of LIC’s strategy and the growing trust of its policyholders and investors alike.
₹12 Final Dividend Announced
In a move that will please shareholders, LIC announced a final dividend of ₹12 per equity share for FY25. The record date for eligibility is set as 25 July 2025, giving stakeholders plenty to look forward to in the coming months. This dividend declaration is another testament to LIC’s robust capital position and shareholder-friendly approach.
Premium Income: Mixed Quarterly, Strong Annual Gains
While net profit surged, LIC’s net premium income dipped slightly by 3.2% in Q4, totalling ₹1,47,917 crore as against ₹1,52,767 crore in the same quarter last year. However, the sequential growth tells a different story—Q4 premium income was 38% higher than Q3’s ₹1,07,302 crore, pointing to strong recovery momentum.
On a full-year basis, total premium income increased to ₹4,88,148 crore, up from ₹4,75,070 crore in FY24. This demonstrates LIC’s continued ability to expand its premium base despite fluctuations in individual quarters.
Individual & Group Business: A Balanced Portfolio
Breaking down LIC’s premium income:
Individual Business Premium grew to ₹3,19,036 crore, up from ₹3,03,768 crore in FY24.
Individual New Business Premium (NBP) rose 8%, reaching ₹62,495 crore.
In the Group Business segment, premium income dipped marginally to ₹1,69,112 crore from ₹1,71,302 crore.
The number of individual policies sold declined to 1.78 crore in FY25 from 2.04 crore the year before—a slight concern, but one counterbalanced by increased premium volumes, suggesting a tilt toward higher-value policies.
Strategic Wins: Non Par Products and VNB Milestone
One of the year’s most significant developments is the increase in Non Par (non-participating) product share in LIC’s individual business. The Non Par APE (Annualised Premium Equivalent) surged 50.28% year-on-year, climbing from ₹7,041 crore in FY24 to ₹10,581 crore in FY25.
Overall, LIC’s total APE stood at ₹56,828 crore, with Individual Business contributing 67.25% (₹38,218 crore) and Group Business making up 32.75% (₹18,610 crore). Within the individual segment, Par products accounted for 72.31%, while Non Par made up the remaining 27.69%.
This growing Non Par share reflects LIC’s strategic pivot to more profitable and stable product offerings, aligning with global insurance trends and improving margins.
In fact, LIC achieved a Net Value of New Business (VNB) of ₹10,011 crore, crossing the ₹10,000 crore mark for the first time, with a VNB margin of 17.6%—a notable achievement underlined by the management.
Policyholder Bonus: ₹56,190 Crore Distributed
LIC has also continued its long-standing tradition of sharing profits with its policyholders, granting a bonus of ₹56,190 crore for FY25. This not only enhances policyholder returns but reinforces LIC’s commitment to its foundational principle: serving the long-term interests of its customers.
Other Key Metrics: AUM, Solvency, Persistency
Assets Under Management (AUM) rose 6.45% year-on-year to ₹54,52,297 crore, reinforcing LIC’s dominance in asset management.
The solvency ratio improved from 1.98 to 2.11, well above regulatory requirements.
The 13th-month persistency ratio stood at 68.62%, holding steady quarter-on-quarter but slightly lower than the 71.86% recorded a year ago. While this may require some focus, it still represents a healthy level of policy retention.
Management Speaks: An “Exciting and Challenging Year
“Siddhartha Mohanty, LIC’s CEO and MD, described FY25 as both “exciting and challenging.” He acknowledged a strong first half, followed by a period of strategic recalibration due to regulatory changes. Mohanty highlighted LIC’s success in achieving its VNB and premium targets, enhancing Non Par product penetration, and relaunching key products to stay compliant and competitive.
“We are proud to have crossed the ₹10,000 crore mark in Net Value of New Business and increased our Non Par share, which aligns with our long-term strategy. We thank our policyholders, agents, employees, and investors for their continued trust,” he said.
Outlook: A Positive Trajectory
Despite facing structural and regulatory headwinds, LIC has managed to improve its profitability, reward its stakeholders, and solidify its strategic roadmap. The emphasis on profitable Non Par products, steady improvement in solvency and VNB margins, and a focus on product innovation are all promising signs for the future.
As the company continues to adapt to evolving consumer needs and regulatory frameworks, LIC seems well-positioned for sustained growth. Shareholders, policyholders, and industry watchers alike will be keeping a close eye on its trajectory in FY26.
Bottom Line
LIC’s FY25 performance is a powerful blend of tradition and transformation. With profits surging, a ₹12 dividend payout, a massive bonus to policyholders, and clear strategic wins in Non Par expansion and VNB growth, the insurer has set a strong precedent for the future. It continues to uphold its legacy while evolving into a modern, growth-oriented financial powerhouse.
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