LIC India’s shares surge over 4% after net profit rises 38% YoY in Q4
LIC India share price today, May 28: LIC India’s Q4 net profit surges 38%, but new business dips; shares in the spotlight. Read more!
The share price of Life Insurance Corporation of India, the country’s largest insurer, surged 4.2% to an intra-day high of Rs 908.60 after the company reported its quarterly earnings for the fourth quarter of FY 2024-25. While net profit rose year-on-year, new business and APE saw a decline.
The life insurer’s profit after tax (PAT) increased by 38% to Rs 19,013 crore for the fourth quarter of the financial year 2024-25, compared with Rs 13,763 crore in the corresponding period a year ago.
However, LIC’s new business premium fell 9% YoY to Rs 70,019 crore compared with Rs 77,282 crore in the same period a year ago. The retail annual premium equivalent (APE) stood at Rs 13,606 crore, a drop from Rs 15,014 crore YoY.
To give you a reference, APE is one of the crucial metrics used in the insurance industry, especially for life insurance, to standardise and compare sales performance.
LIC’s total APE came in at Rs 18,853 crore for the last quarter of the financial year 2024-25. At the same time, the Value of New Business (VNB) stood at Rs 3,534 crore in the fourth quarter of FY25, a decline of 14% YoY as against Rs 4,105 crore reported in the same quarter of the last fiscal.
Also, the board of the company recommended a final dividend of Rs 12 per equity share for the financial year 2024-25, which is subject to the shareholders’ approval.
In the third quarter of the financial year 2024-25, the insurance giant reported an increase of 16% YoY to Rs 11,009 crore as against Rs 9,469 crore reported in the same quarter a year ago. Similar to Q4, the company’s net premium income declined 9% YoY to Rs 1,17,432 crore in Q3 FY25.
LIC’s stock performance
The share price of LIC India has risen 2.3% in the last five trading days. It has given a return of 8.34% in the previous one month. However, the stock price of LIC India has fallen more than 7% in the past six months. LIC India’s share price has erased over 14% of investors’ wealth in the last one year.