LIC shares dip post Q3 profit jump and new business slow growth 

Life Insurance Corporation (LIC) shares traded at ₹809, down 0.87 per cent on NSE, following Goldman Sachs maintaining a neutral rating with a ₹900 target price. Market analyst Deepak Shenoy noted the upcoming fourth quarter could be significant as LIC switches to a 10 per cent profit share from participating policyholders, up from 7.5 per cent last year.

The state-run insurer reported a 17 per cent year-on-year increase in net profit to ₹11,056.5 crore for Q3 FY25, primarily driven by expense reductions. Total expenses decreased by 20.76 per cent to ₹14,415.80 crore, with employee costs falling nearly 30 per cent.

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However, new business metrics showed strain, with the value of new business premium declining 26.87 per cent to ₹1,926 crore and annualized premium equivalent dropping 24 per cent to ₹9,950 crore. Individual policy sales decreased 6.73 per cent to 1.17 crore policies.

For the nine-month period of FY25, LIC’s total premium income grew 5.51 per cent to ₹3,40,563 crore, while PAT increased 8.27 per cent to ₹29,138 crore. The company maintained market leadership with a 57.42 per cent share in first-year premium income.

MD Siddhartha Mohanty attributed the decline in policy sales to agents adapting to new product regulations. The company’s assets under management grew 10.3 per cent to ₹54.77 trillion as of December 31, 2024.