LIC Reports 38% Jump in Q4 Net Profit to ₹19,013 Crore on Improved Margins and Non-Par Business Strategy
Life Insurance Corporation of India (LIC), the country’s largest insurer, has reported a significant 38% year-on-year rise in net profit for the fourth quarter of FY25. The net profit stood at ₹19,013 crore, up from ₹13,763 crore in the same period last year. This growth comes amid strategic moves by LIC to strengthen its non-participating (non-par) business and improve profit margins.
Key Financial Highlights:
Net Profit: ₹19,013 crore in Q4 FY25, up 38% YoY
Net Premium Income: ₹1.48 lakh crore, down 3% due to regulatory changes
Solvency Ratio: Improved to 2.11 from 1.98
Employee Expenses: Fell significantly to ₹5,928 crore from ₹13,750 crore
Dividend: ₹12 per share declared as the final dividend
Driving Factors Behind the Growth
The sharp increase in profit is attributed to:
A rise in the share of non-par business, which typically yields higher margins than participating policies.
Cost efficiency, especially a reduction in employee expenses, with no one-time wage revision this year.
An improved solvency ratio, indicating stronger financial health and capital adequacy.
Stock Market Response
Following the earnings announcement, LIC’s stock surged up to 9% intraday, reaching a high of ₹948 on the Bombay Stock Exchange (BSE), reflecting positive investor sentiment.
Outlook and Analyst Opinion
Market analysts view LIC’s results as a turning point for the company’s profitability trajectory. The growing focus on high-margin products and operational efficiency is expected to support future earnings.
“The results show LIC’s commitment to optimizing its business mix and improving shareholder returns,” said a senior market analyst.
Conclusion
LIC’s Q4 results mark a strong end to the financial year, setting a positive tone for FY26. With a balanced approach towards product innovation and cost control, the insurer is well-positioned for sustained growth in the coming quarters.
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