LIC, the country’s largest life insurance company, on Tuesday reported a net profit of ₹19,012.79 crore for the fourth quarter ended March 31, 2025, up 38.14 per cent from ₹13,762.64 crore in the corresponding quarter of the previous year.

The increase in bottomline was aided by a decline in expenses of management, which stood at ₹16,495.08 crore during Q4FY25 compared with ₹24,709.05 crore in Q4FY24.

Net premium income during Q4FY25 was ₹1,47,585.56 crore, down 3.09 per cent from ₹1,52,293.13 crore in Q4FY24, with first-year premium down 19.84 per cent year on year.

“There was a change in product regulation which came into effect from October 2024. So Q3FY25 for us was challenging, and that has somehow spilt to Q4FY25, though towards the end of the quarter, by March, we did exceedingly well. Our agents had to adjust to the new product regulations, which took some time. In the current year, however, we are slowly seeing good growth,” said Siddhartha Mohanty, CEO and MD, LIC.

For the entire FY25, net profit was ₹48,151 crore, up 18.38 per cent from ₹40,676 crore in FY24.

“We have achieved an individual new business premium of ₹62,495 crore in a single year. Our net VNB (value of new business) for the year is ₹10,011 crore, i.e. over ₹10,000 crore for the first time. Our VNB margin is steadily on the rise, reaching 17.6 per cent as of March 31, 2025. Our strategy to increase non-par share is further getting consolidated,” said Mohanty, highlighting the achievements for the year.

Bonus and Dividend

The amount of bonus allocated to policyholders for FY25 is ₹56,190.24 crore against ₹52,955.87 crore for FY24.

LIC’s board has also recommended a final dividend of ₹12 per share for FY25, subject to approval of shareholders. This is marginally higher than the aggregate dividend of ₹10 per share in FY24.

However, even as dividends have risen, Tuesday’s share price of ₹871.05 on the BSE is below the price band of ₹902-949 per share at the time of the IPO in 2022, having seen a correction from a 52 week high of ₹1,221.5 per share on August 1, 2024.

Health venture

LIC’s board could take a decision to pick up a strategic stake in a standalone health insurance company soon, marking the life insurance company’s foray into health insurance.

“Discussions are almost at a final stage. We will go to our board. I think within 2-3 months, some decision will be taken by the board,” said Mohanty.