CMP: ₹870.70 | PAT: ₹48,151 Cr | Dividend: ₹12/share | Market Leader in Life Insurance | AUM: ₹54.5 Lakh Cr
🪙 At a Glance
India’s OG financial powerhouse — Life Insurance Corporation of India (LIC) — has wrapped up FY25 with a record ₹48,151 Cr net profit, up 18.38% YoY.
That’s more than the combined FY25 profits of HDFC Life, SBI Life, ICICI Prudential, and Max Life — put together. 🤯
And they’re giving ₹56,190 Cr back to policyholders as bonus.
Also:
- ₹62,495 Cr in individual new business
- ₹12/share dividend recommended
- ₹2.85 lakh crore in APE
- Guinness World Record for most policies sold in 24 hours (!)
📊 Key Financials (YoY)
| Metric | FY25 | FY24 | Change |
|---|---|---|---|
| Profit After Tax (PAT) | ₹48,151 Cr | ₹40,676 Cr | 🔼 +18.38% |
| Total Premium Income | ₹4,88,148 Cr | ₹4,75,070 Cr | 🔼 +2.75% |
| Individual New Biz Premium | ₹62,495 Cr | ₹57,716 Cr | 🔼 +8.28% |
| AUM (Assets Under Management) | ₹54,52,297 Cr | ₹51,21,887 Cr | 🔼 +6.45% |
| Indian Embedded Value (IEV) | ₹7,76,876 Cr | ₹7,27,344 Cr | 🔼 +6.81% |
| Solvency Ratio | 2.11 | 1.98 | 🟢 Improved |
| Expense Ratio | 12.42% | 15.57% | 🔽 -315 bps |
| VNB Margin | 17.6% | 16.8% | 🔼 +80 bps |
💡 EduInvesting Take
LIC is like a PSU tank that’s now drifting like a Tesla — still massive, but suddenly agile, efficient, and way more profitable.
- 📈 ₹48,151 Cr profit puts LIC among India’s top 3 most profitable companies, even ahead of SBI and HDFC Bank
- 🪙 Bonus to policyholders = ₹56,190 Cr — almost 14x what HDFC Life made as PAT
- 💸 ₹12/share dividend — a direct reward to long-term investors
- 🧾 74.84% 13-month persistency and rising Non-Par APE show it’s not just size, it’s quality of business
And then there’s the mic drop:
🔥 5.88 lakh policies sold in one day — Guinness World Record, baby.
🚀 What’s Fueling the LIC Resurgence?
- ✅ Aggressive Non-Par Growth: Non-Par APE up 50.28% YoY, now 27.69% of biz
- ✅ Cost Cuts: Expense ratio slashed by 315 bps
- ✅ Solvency Buffers: Strong 2.11 solvency ratio — safe and solid
- ✅ Reimagined Products: Relaunched plans post regulatory changes helped Q4 bounce
🏆 Market Leadership Snapshot
| Segment | Market Share FY25 |
|---|---|
| Overall Life Insurance | 57.05% |
| Individual Business | 37.46% |
| Group Business | 71.19% |
Despite private players’ marketing blitz, LIC still owns over half the market.
⚠️ But What About Challenges?
- 😬 Individual policies sold dropped 12.8% YoY
- 🧊 Premium growth is slowing — just 2.75% YoY overall
- 🔁 Product compliance changes impacted sales in H2
But these are volume metrics, and LIC is pivoting to quality:
- Focus on high-margin Non-Par products
- APE stable, even with policy count drop
- Persistency ratios improving — policyholders are sticking around
💰 Bonus & Dividend Impact
- ₹56,190 Cr bonus = real money going back to crores of policyholders
- ₹12/share final dividend = strong payout on top of existing interim dividends
This also signals government’s intent to reward retail investors after LIC’s IPO — which was famously not a moonshot.
🧮 Valuation Snapshot
| Metric | Value |
|---|---|
| Market Cap | ~₹5.5 Lakh Cr |
| P/E (TTM) | ~11.5x |
| AUM | ₹54.5 Lakh Cr |
| Embedded Value (IEV) | ₹7.77 Lakh Cr |
| Price/IEV | ~0.7x |
LIC trades at a 30–50% discount to private players on most valuation metrics — despite superior profitability.
🏁 Final Word
In FY25, LIC reminded everyone: size + scale + margins = still the king.
This is a rare PSU that:
- Smashed profit records
- Declared world records
- Cut costs
- Grew high-margin business
- And still trades at a discount
India’s biggest insurer is no longer just a sleeping giant. It’s wide awake, rich, and rewarding.
🗓️ Published: May 28, 2025
✍️ By: Prashant Marathe
Tags: LIC FY25 Results, ₹48,000 Cr PAT LIC, ₹12 Dividend LIC, LIC Bonus 2025, Guinness Record LIC, LIC AUM 54 Lakh Crore, EduInvesting
