Life Insurance coverage Company (LIC) shares traded at ₹809, down 0.87 per cent on NSE, following Goldman Sachs sustaining a impartial score with a ₹900 goal value. Market analyst Deepak Shenoy famous the upcoming fourth quarter may very well be important as LIC switches to a ten per cent revenue share from taking part policyholders, up from 7.5 per cent final yr.
The state-run insurer reported a 17 per cent year-on-year enhance in web revenue to ₹11,056.5 crore for Q3 FY25, primarily pushed by expense reductions. Complete bills decreased by 20.76 per cent to ₹14,415.80 crore, with worker prices falling practically 30 per cent.
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Nonetheless, new enterprise metrics confirmed pressure, with the worth of latest enterprise premium declining 26.87 per cent to ₹1,926 crore and annualized premium equal dropping 24 per cent to ₹9,950 crore. Particular person coverage gross sales decreased 6.73 per cent to 1.17 crore insurance policies.
For the nine-month interval of FY25, LIC’s whole premium earnings grew 5.51 per cent to ₹3,40,563 crore, whereas PAT elevated 8.27 per cent to ₹29,138 crore. The corporate maintained market management with a 57.42 per cent share in first-year premium earnings.
MD Siddhartha Mohanty attributed the decline in coverage gross sales to brokers adapting to new product laws. The corporate’s property beneath administration grew 10.3 per cent to ₹54.77 trillion as of December 31, 2024.
