LICINSEAugust 14, 2025

Life Insurance Corporation Of India

9,414words

79turns

12analyst exchanges

14executives

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Management on call

R. Doraiswamy

- CHIEF EXECUTIVE OFFICER AND

Sat Pal Bhanoo

MANAGING DIRECTOR – LIFE INSURANCE CORPORATION OF INDIA

Dinesh Pant

MANAGING DIRECTOR – LIFE INSURANCE CORPORATION OF INDIA

Ratnakar Patnaik

MANAGING DIRECTOR – LIFE INSURANCE CORPORATION OF INDIA

A.K. Srivastava

APPOINTED ACTUARY AND EXECUTIVE

Sunil Agrawal

CHIEF FINANCIAL OFFICER – LIFE INSURANCE CORPORATION OF INDIA

R. Chander

EXECUTIVE DIRECTOR, INVESTMENT FRONT

S.K. Srivastava

EXECUTIVE DIRECTOR, INVESTMENT

R. Sudhakar

EXECUTIVE DIRECTOR, MARKETING AND

Hemant Buch

- EXECUTIVE DIRECTOR MARKETING,

K. Seshagiridhar

EXECUTIVE DIRECTOR, PENSION AND

Shobha Sulochana

EXECUTIVE DIRECTOR, CRM,

Vandana Sinha

EXECUTIVE DIRECTOR, CRM, CLAIMS

Sanjay Bajaj

HEAD INVESTOR RELATIONS – LIFE INSURANCE CORPORATION OF INDIA

Key numbers — 40 extracted

rs,

uly 14th, 2025. I am eager to establish a regular dialogue with all of you over the next three years, fostering a deeper understanding of our organization's performance and progress. In this call to

63.51%

et Share: Our market share by First Year Premium Income for the quarter ended June 30th, 2025 was 63.51% as compared to 64.02% for the similar period ended June 30th, 2024 as per IRDAI data. As you will

64.02%

hare by First Year Premium Income for the quarter ended June 30th, 2025 was 63.51% as compared to 64.02% for the similar period ended June 30th, 2024 as per IRDAI data. As you will recall, our market sh

57.05%

as per IRDAI data. As you will recall, our market share for full year ended March 31st, 2025 was 57.05%. Therefore, we are witnessing an increase in market share since beginning of this financial year.

38.76%

63.51% into segment wise share of individual and group business, we would have a market share of 38.76% in individual business and 76.54% in the group business for the quarter ended June 30th, 2025. On

76.54%

individual and group business, we would have a market share of 38.76% in individual business and 76.54% in the group business for the quarter ended June 30th, 2025. On a comparable basis for the quarte

39.27%

uarter ended June 30th, 2024, the respective market shares for Individual and Group business were 39.27% and 76.59%, respectively. Premium Income: For the quarter ended June 30th, 2025 we have repor

76.59%

d June 30th, 2024, the respective market shares for Individual and Group business were 39.27% and 76.59%, respectively. Premium Income: For the quarter ended June 30th, 2025 we have reported a Total

Rs.1,19,200 Crore

Premium Income: For the quarter ended June 30th, 2025 we have reported a Total Premium Income of Rs.1,19,200 Crore as compared to total premium income of Rs. 1,13,770 Crore for the quarter ended June 30th, 2024

Rs. 1,13,770 Crore

have reported a Total Premium Income of Rs.1,19,200 Crore as compared to total premium income of Rs. 1,13,770 Crore for the quarter ended June 30th, 2024 registering a growth of 4.77% on Year on Year basis. The In

4.77%

remium income of Rs. 1,13,770 Crore for the quarter ended June 30th, 2024 registering a growth of 4.77% on Year on Year basis. The Individual New Business Premium Income for quarter ended June 30th, 20

Rs.12,536 Crore

r on Year basis. The Individual New Business Premium Income for quarter ended June 30th, 2025 was Rs.12,536 Crore which was Rs.11,892 Crore for the corresponding period of last year thereby registering a growth

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Guidance — 18 items

Operational efficiency and Digital Progress

opening

“DIVE (Digital Innovation & Value Enhancement) and Jeevan Samarth Initiatives: The DIVE project and Jeevan Samarth project, for which we had appointed Boston Consulting Group and AT Kearney, respectively, are progressing as planned.”

Operational efficiency and Digital Progress

opening

“We intend to roll out these initiatives on a pan India basis in near future.”

Claims

opening

“We anticipate that this program will become a crucial component in achieving the objective of 'Insurance for all by 2047'.”

R. Sudhakar

“And consistently, it has improved in the next quarter ended March and in the current quarter also.”

R. Sudhakar

“But at the same time, the average ticket size as well as average sum assured increasing, we are confident that going forward, the productivity of agents in numbers also will be improving.”

R. Sudhakar

“Second, focus will be on recruitment from the millennial segment because we are facing the issue of the millennial customers today.”

R. Sudhakar

“So we will be having a force of millennial agents, and they will be shown a path agency as a career because we have seen in the past, high attrition rates are there, but our focus will be recruit, retain, and put in resilience among the agency force.”

Sunil Agrawal

“So the dividend policy will be consistently sustainable increase going forward in the years to come.”

Dinesh Pant

“We are definite that we will be able to sustain and improve from there.”

Aditi Joshi

“And if so, are we going to take any repricing measures going forward, which will sort of nullify that effect going forward?”

Risks & concerns — 8 flagged

And is this kind of preserving the capital some way also linked to some uncertainty around solvency once we move to a risk-based solvency regime or what so these are my 2 linked questions that what is the comfortable range of solvency?

— Avinash Singh

And is this conservatism in terms of preserving capital linked to kind of uncertainty around risk-based solvency implementation?

— Avinash Singh

But your concern which you are talking about in terms of dividend, I would believe that you would appreciate that dividend is not the only way to reward the investors.

— Dinesh Pant

So, on the group front, I don't know if you added was, are we seeing more growth -- strong growth in group protection products like this, which is driving higher margins apart from the cost of -- apart from the decline in cost ratios?

— Punit Balani

However, there are certain areas in any line of business-like annuities where there could be in the interest rate falling situation, there could be negative pressure.

— Dinesh Pant

And on the -- would you like to mention about some growth targets which the corporation is looking at, given that last year, we had weak growth once the surrender norms came in, in the second half.

— Raghvesh

So, my question is, as LIC continues to digitize its distribution and policy serving platforms, how are you planning to use the how you are planning to use AI for the underwriting and behavioral analytics or embed insurance models to deepen customer engagement and improve risk selection for FY '30.

— Sucrit Patil

As you said, integration of AI as well as ML into our decision-making process, starting from underwriting and risk assessment is a part of the transformation that we are looking at.

— R. Doraiswamy

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Q&A — 12 exchanges

Thank you for the opportunity. Congrats to the new members on a good set of numbers. Sir, first in terms of the growth in the individual business, I wanted to understand, I mean, the growth looks largely coming up on the back of ULIP. And given that ULIP is increasing and that is the only, I think, component where we have seen a sizable increase in mix on a year-on-year basis. Despite that, we are seeing a margin improvement. So, I just wanted to understand how this is playing out. So vis-a-vis, say, a par product, how does the margins in your ULIP product stack up? And has there been any move

A.K. Srivastava

Yes. Thank you. Good evening! I'm Ajay Kumar Srivastava, Appointed Actuary and Executive Director, Actuarial. We have actually taken several steps to ensure that the margins actually go up in accordance with our business strategy. One of such the indicators is that individual non-par APE has grown by 32.63% Q-on-Q basis, taking non-par proportion to 30.34%. Now this consists of those products which have high margins. Apart from that, if you were -- as you mentioned, rightly mentioned that last year, product regulations had come up. And then we had to withdraw all the products and then we had t

Good evening! Thank you for the opportunity. So, a couple of questions. The first one is my question on solvency and your dividend paying policy. I mean, as we can kind of observe that since the time you have listed and you of course, you have this bifurcation of account and the policy change on surplus transfer from non-par, the solvency now is inching up. I mean Y-o-Y solvency is up 18%. Now it is 217%. And still, you have kind of a very sizable chunk of surplus sitting in the non-par book that is still kind of where MTM is not part of your solvency capital. So, on that, my message is that -

Sunil Agrawal

So as far as your question on dividend is concerned, you should have noticed that consistently, we have been increasing the dividend year-on-year. We started with the dividend of RS.1.5 immediately after the corporation got listed on 17th May 2022, and which has gone up to Rs.12, which is proposed this year and subject to the approval of the forthcoming AGM. So we are consistently improvising on increasing the dividend on a sustainable basis, and we'll continue to do that in the near future as well. As far as the money retention is concerned, we are keeping the money retained for the future gr

Just one question on the margin work that you have provided. If you are able to just share what is causing the positive support in the margins from the operating assumptions. So, is it the expenses that is causing the positive movement? And second, on the negative economic assumption resetting, is it related to the yield side? If you're able to confirm that? And if so, are we going to take any repricing measures going forward, which will sort of nullify that effect going forward? And the second question is for the full year 2026. Are you able to share any guidance of the margin profile as in,

A.K. Srivastava

So, if we the economic assumption, as you rightly put in is because of reduction in RFR rates to the extent of 50 to 75 basis points during this quarter. So that actually has caused the reduction to the extent of 2.3% in economic assumptions. Regarding the operating assumptions, the major driver, of course, as you mentioned rightly, is expense optimization and long-term persistency, as you may have noticed, the 61st month persistency has increased. So, the expense level has come down significantly with expense ratio down to 10.5% from 11.87%. And coupled with that, the mortality experience rem

So just a few questions from my side. First, if you can give some color on the trajectory of the VNB margin in the group business? How has that shaped up on a Y-o-Y basis? Second, obviously, there have been some discussion on the agency part, and you mentioned that in terms of the sum assured and ticket size going up, while number of policies are still a little sluggish. In terms of the activation rates, can you give some color of how the activation rate on the agency has been, let's say, from October onwards versus post pre-October? And the reason I'm asking this is because I think there was

Dinesh Pant

As far as VNB margin in the group business is concerned, you are aware that that's not a very high VNB margin business. But within group business also, the margins vary across the nature of the products. We are on the lower side on the fund-based business, but they are on the higher side in the assurance business, right? So, we are trying to focus. But from the point of view, we are not seeing actually the situation only from the context of VNB margin. Let's be clear about it. The ultimate context is that VNB margin should improve, but the volume should also -- VNB margin should not come in th

No. And the third question in terms of any timelines for the government stake?

R. Doraiswamy

See, the government has been clarifying time to time as to what they are planning to do. They have already taken a timeline of 2027 for bringing down their stake to 90%. And recently, the government has also announced that they'll be going ahead with some offloading in some tranches. Beyond that, we also do not have any direct visibility of what the government is going to do. But the government has been making announcements, and I think this is something which can be better answered by the Government of India rather than by the LIC management.

Just 2 aspects. So, on the group front, I don't know if you added was, are we seeing more growth -- strong growth in group protection products like this, which is driving higher margins apart from the cost of -- apart from the decline in cost ratios? And second thing, I don't know if you mentioned what is the individual VNB margins? You had highlighted it last quarter around if you could highlight it again this quarter. Sorry if I missed it earlier.

Dinesh Pant

Individual last quarter* was around 21%. It would be slightly better than that** in this quarter. So around 3% to 4% improvement would have happened there around 23% - 24%*** would be the individual business side of it. In Group Business, as we are talking about, there may be some factors. For example, the longevity improving even in the administration scheme would add to the VNB margin improving there. Then similarly, as you mentioned rightly, so the larger focus on the production side of business, as I mentioned earlier, is also a contributor to that thing. However, there are certain areas i

Sir, my first question is on the ULIP segment. I think we have grown very significantly on that side. So can you help us understand what is helping driving growth in that segment? And what is the contribution of the monthly mode in that business segment? And secondly, what kind of ULIP mix are we targeting as a mix of the individual business? It would be like 20%, 25% or we are comfortable with 13 to 15-odd percentage. And on the ULIP business side, what kind of lapsation assumptions are we building in, especially for the 61st month persistency? So that's the first part of it. And then on the

Dinesh Pant

In ULIP side, you see, again, we'd like to repeat that. Our larger focus is that what is the need for the customers, where the flavor lies for them. It is not that as a corporation, our endeavor is to be able to offer every type of product to the customers and let them select what is best for them. So, it is driven by the demand rather than and we our job is to supply the products, which cater to the need. You would appreciate that in the Indian context; there's a lot of participation in the market. So therefore, ULIPs have become very important. in context of -- though we all realize that mar

Congratulations on a very strong set of results. Sir, a couple of questions. First, you mentioned 23% to 24% margins on the individual business. So back calculating the group business margins comes to somewhere around 5%, which when we used to disclose it used to be somewhere around 10%. So, I mean, what has actually caused the shift in the VNB margins for the group business?

Dinesh Pant

No, no, it has not reduced. The business has not reduced. So, it has not come down. Let me so we are not actually looking at the numbers. Numbers we have given is at the corporation level. But the group VNB margin is definitely not in a single digit. It is -- the proportion is in the double digits. But then we do not want to actually see on those numbers. See, almost in all lines of businesses*, actually, VNB margin has stabilized or improved. So, in fact, interestingly, even in our participating line of business also, it has improved. But the earlier question was on individual business. So --

I would like to ask a specific question to Mr. Doraiswamy. Is Mr. Doraiswamy there online?

R. Doraiswamy

Yes, sir. I will answer, yes. So first of all, I would like to congratulate you on your appointment as the CEO and Managing Director of the biggest insurer of India, LIC. And my question is a bit of a nonfinancial background question. So, my question is, as LIC continues to digitize its distribution and policy serving platforms, how are you planning to use the how you are planning to use AI for the underwriting and behavioral analytics or embed insurance models to deepen customer engagement and improve risk selection for FY '30. I would like to hear your thoughts on this. And how could this po

Congratulations for a good set of numbers. Am I audible?

R. Doraiswamy

Yes, you're audible. Yes, most of the question was answered. But only thing is about the health insurance also, like we were hearing that you are entering into health insurance. So, what's the update on that, the first thing? And secondly, as you said that means you are worrying about the investor like us also. So obviously, either it's a price increase or the dividend and all. You know that one other company, the peer company is getting the like valuation of 80, 90p. I'm not saying the comparing, but your company is getting 11. So, either you are working something for the investor like doing

Thank you. We appreciate your active engagement and valuable input during today's discussion. Your ongoing support is invaluable to us, and we eagerly anticipate continuing our partnership to foster growth, achieve success and create value for all the stakeholders involved. Once again, I thank you for your participation. Best regards.

Management

Thank you.

Management

Speaking time

Moderator

Dinesh Pant

R. Doraiswamy

A.K. Srivastava

Shobhit Sharma

Swarnabha Mukherjee

R. Sudhakar

Aditi Joshi

Sucrit Patil

Avinash Singh

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Opening remarks

R. Doraiswamy

Good evening, everyone. I am R Doraiswamy, Chief Executive Officer & Managing Director, LIC. First and foremost, I would like to welcome and extend my gratitude to everyone who has joined us today to listen to the LIC team. This is my first analyst call after assuming charge as CEO & MD of LIC on July 14th, 2025. I am eager to establish a regular dialogue with all of you over the next three years, fostering a deeper understanding of our organization's performance and progress. In this call today we shall discuss the business and financial performance for the quarter ending June 30th, 2025, thereby providing you with insights into our current standing and future prospects. Our results declared today have been uploaded along with Press Release and the Investor Presentation on our website as well as the websites of both the exchanges - BSE and NSE. Along with me, on this call, I have three Managing Directors, Mr. Sat Pal Bhanoo, Mr Dinesh Pant and Mr. Ratnakar Patnaik. Senior officials of

Market Share

Our market share by First Year Premium Income for the quarter ended June 30th, 2025 was 63.51% as compared to 64.02% for the similar period ended June 30th, 2024 as per IRDAI data. As you will recall, our market share for full year ended March 31st, 2025 was 57.05%. Therefore, we are witnessing an increase in market share since beginning of this financial year. LIC continues to lead the Indian life insurance industry both in the Individual and Group Business segments. Now, if we bifurcate this overall market share of 63.51% into segment wise share of individual and group business, we would have a market share of 38.76% in individual business and 76.54% in the group business for the quarter ended June 30th, 2025. On a comparable basis for the quarter ended June 30th, 2024, the respective market shares for Individual and Group business were 39.27% and 76.59%, respectively.

Premium Income

For the quarter ended June 30th, 2025 we have reported a Total Premium Income of Rs.1,19,200 Crore as compared to total premium income of Rs. 1,13,770 Crore for the quarter ended June 30th, 2024 registering a growth of 4.77% on Year on Year basis. The Individual New Business Premium Income for quarter ended June 30th, 2025 was Rs.12,536 Crore which was Rs.11,892 Crore for the corresponding period of last year thereby registering a growth of 5.42% on Year on Year basis. Further, Renewal Premium Income (Individual business) for quarter ended June 30th, 2025 was Rs. 58,938 Crore as compared to Rs.55,300 Crore for quarter ended June 30th, 2024, thereby registering a growth of 6.58%. Therefore, for the quarter ended June 30th, 2025, our Total Individual Premium Income including renewals was Rs. 71,474 Crore as compared to Rs.67,192 Crore for quarter ended June 30th, 2024 registering a growth of 6.37% on Year on Year basis. The Group Business total premium income for quarter ended June 30th,

Break Up of Business on APE basis

Total Annualized Premium Equivalent (APE) for quarter ended June 30th, 2025 was Rs.12,652 Crore which comprised Individual APE of Rs.7,061 Crore and Group APE of Rs.5,590 Crore. Therefore, on APE basis, the individual business accounts for 55.81% and Group business accounts for 44.18%. Further, of the Individual APE, the Par business accounts for Rs.4,919 Crore and Non Par amounts to Rs.2,142 Crore. Therefore, our Non Par share of Individual APE is 30.34% and Par share of Individual APE is 69.66% for quarter ended June 30th, 2025. As you may recall, for the quarter ended June 30th, 2024, our Non-Par share of total individual business, based on APE, stood at 23.94%. Since then, our Non-Par APE has increased substantially from Rs.1,615 Crore to Rs.2,142 Crore. This marks a year-on-year growth of 32.63% in Non-Par APE within the Individual Business indicating a rapid expansion of our Non Par share.

Profit After Tax

The Profit after Tax (PAT) for the quarter ended June 30th, 2025 was Rs.10,986 Crore as compared to Rs.10,461 Crore for quarter ended June 30th, 2024 registering a growth of 5.02% on Year on Year basis.

VNB and VNB Margins

The net VNB margin has improved by 150 basis points on a Year on Year basis from 13.9% for the quarter ended June 30th, 2024 to 15.4% for the quarter ended June 30th, 2025. Further, the net VNB has registered a growth of 20.75% on Year on Year basis from Rs.1,610 Crore for the quarter ended June 30th, 2024 to Rs.1,944 Crore for the quarter ended June 30th, 2025.

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Life Insurance Corporation Of India

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