MA -

The Life Insurance Corporation of India (LIC) – India is largest insurer reported a blockbuster fourth-quarter (Q4 FY2025) performance on May 27, 2025. Net profit jumped 38 time- on- time to ₹ 19,013 crore, well above request prospects. Total income( profit) for the quarter was ₹ 241,625 crore, slightly down from ₹ 250,923 crore a time agone, as ultraexpensive growth was tempered by nonsupervisory changes. LIC’s board also declared a final earnings figure of ₹12 per share for FY2025. Key Highlights of LIC Q4 FY2025 Results Net Profit (PAT): ₹19,013 crore (↑38% YoY). This Q4 profit far exceeded the previous year’s ₹13,763 crore and beat analyst estimates (Bloomberg had forecast ~₹12,395 cr). Revenue / Premium Income: Total income was ₹241,625 cr (down ~3.6% YoY). Core net premium income (from insurance operations) fell 3% YoY to ₹147,586 cr (from ₹152,293 cr a year ago) as policy sales were affected by regulatory changes. EPS (Basic, Q4): ~₹30 per share. (Net profit ₹19,013 cr ÷ ₹21.8). New Business Premium / APE: Q4 Annualized Premium Equivalent (APE) was about ₹18,853 cr, down ~11% YoY. Value of New Business (VNB) for Q4 was ~₹3,534 cr (−3% YoY), but the VNB margin rose to ~18.75% (from 17.21% last year), reflecting better product mix and cost control. For the full year FY2025, LIC achieved a record ₹62,495 cr in individual new business premium (up 8.3% YoY), with VNB ₹10,011 cr (up 4.5%) and a 17.6% margin (up 80 bps). Assets Beneath Administration (AUM): ₹54.52 lakh crore (₹54,52,297 cr), up 6.45% YoY. LIC continued to grow its investment book, with strong gains in equities (investments up 41% YoY) and a new focus on corporate bonds (₹80,000 cr added). Operating Ratios: Expense ratio (management cost ratio) improved markedly to 12.42% in Q4 (down 315 bps YoY), largely due to last year’s wage revision provisions dropping out. The dissolvability proportion fortified to 2.11 (vs 1.98 a year back), reflecting a more advantageous adjust sheet. Dividend: Last profit of ₹12 per share endorsed for Q4 FY2025. This high payout (2.4% yield at current prices) underlines LIC’s shareholder return policy. These metrics show LIC’s mix: robust profitability (via higher margins and cost cuts) even as premium growth stayed subdued. First-year premiums dipped (Q4 first-year premium was ₹11,069 cr vs ₹13,810 cr last year) while renewals rose (₹79,138 cr vs ₹77,368 cr). The result is a strong bottom line but slower top-line growth, in line with industry trends after regulatory changes. Market Reaction: LIC Share Price Movement LIC’s Q4 results triggered a sharp stock rally. On May 28, 2025 (the next trading day), LIC shares jumped as much as 8.8% intraday, hitting about ₹948 on the BSE. The stock closed at ₹942.55, up 8.21%. This was LIC’s biggest one-day gain in months. Prior to the comes about, LIC had closed around ₹871 on May 27, so the declaration impelled a ~9% bounce back. The market enthusiasm reflected relief at the earnings beat and strong margins. Brokerage reports noted the share surge as “the best session since Nov 2023”. For context, LIC had been trading lower earlier in the year (down about 16% over the last year), so the Q4 upside helps recoup some losses. Liquidity is high – LIC’s market cap is now around ₹5.51 lakh crore – making any news impactful. Analysts cited the rally as a vote of confidence in LIC’s turnaround, especially after a challenging previous quarter. Expert Commentary on LIC Q4 Results Market analysts and brokerages offered mostly bullish takes on the results: Macquarie (through NDTV Benefit) – The Australian bank kept up an outperform rating on LIC,Highlighting that the current valuation provides a security net. Macquarie famous that the 38% bounce in Q4 benefit (to ₹19,038.7 cr) distant outperformed gauges. It emphasized the improved solvency (2.11) and rising VNB margins as positives, while cautioning that sustaining margins in the participating book will be key. Motilal Oswal – LIC analysts reiterated a “buy” stance, pointing out LIC’s industry-leading position and focus areas. They applaud LIC’s strategy to expand higher-ticket, non-participating (non-par) products and bank-assurance channels, which should raise margins and growth. Motilal Oswal expects this shift to boost LIC’s VNB margin and earnings power. Geojit Money related – Gaurang Shah, Senior VP at Geojit, resounded a positive long term view. He told Business Today that LIC looks attractive over a 2+ year horizon, implying that patient investors could gain as LIC’s business normalizes. In his view, LIC’s strong FY25 milestones (record new business premium, ₹10,011 cr VNB, 17.6% VNB margin) lay the groundwork for future returns. Others / Media – Reuters and other reports noted LIC’s “surprisingly strong” profit rise on lower costs, and highlighted management’s plans to bolster high-margin products (non-par share rose to 27.7% in FY25). The profit beat (versus investigator fears of a plunge) and moved forward dissolvability were broadly seen as approving LIC’s budgetary wellbeing. Conclusion: Implications for Investors For retail investors, LIC's Q4 FY2025 earnings reflect the company’s robust financial foundation. The sharp rise in net profit – driven by tighter cost control and better margins – suggests the IPO-era concerns over profitability are easing. The high solvency ratio and ₹12 dividend indicate robust financial strength, making LIC a steady income stock. Overall,the Q4 results beat expectations and triggered a market rally, but investors should watch if LIC can sustain this momentum. The focus will be on executing new high-margin product mix and improving persistency. With LIC trading at a reasonable P/E given its strong balance sheet and future prospects, many see it as a value play for conservative portfolios. The key takeaway: LIC is on healthier footing now, but a steady hand is needed as it navigates regulatory headwinds and executes its strategy. Related Article NTPC Q4 FY25 Earnings Review: Robust Growth and Future Strategies BEL Q4 Earnings Report 2025: 18% Profit Surge, Expanding Order Book SBI Q4 results 2025: Net profit declined by 10%, settling at ₹18,643 crore

Author name: MA

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