Life Insurance Corp. Of India · NSE:LICI
Life Insurance Corp. Of India — Life Insurance Corporation of India — FY2025 Earnings Presentation
68 slides from Life Insurance Corp. Of India's earnings presentation, May 27, 2025
Slide 1: Exchange cover letter: Presentation for Analyst Call
Ref. No.: LIC/SE/2025-26/22 Date: May 27, 2025 To, The Manager The Manager Listing Department, Listing Department, BSE Limited, The National Stock Exchange of India Phiroze Jeejeebhoy Tower, Ltd., th Dalal Street, Exchange Plaza, 5 Floor, Plot C/1, Mumbai-400001 G Block, Bandra Kurla Complex, Mumbai
Slide 2: Investor Presentation FY25
INVESTOR PRESENTATION Q3 -FY 25 Investor Presentation FY25 February 7, 2025 May 27, 2025
Slide 3: Agenda
AGENDA 1 INTRODUCTION TO LIC 5 ACHIEVING OPERATIONAL EFFICIENCIES 2 BUSINESS AND FINANCIAL 6 KEY FOCUS AREAS UPDATES 3 ACTUARIAL UPDATES 7 APPENDIX 4 MARKETING AND DISTRIBUTION STRENGTHS
Slide 4: Introduction to LIC
frat Frers LIFE INSURANCE CORPORATION OF INDIA
Slide 5: Largest life insurer in India – Market leader
Largest life insurer in India – Market leader Achieved GUINNESS WORLD RECORDS Title for the "MOST LIFE INSURANCE POLICIES SOLD IN 24 HOURS”⁶ 2nd Largest public sector company in India by Market Capitalisation.1 World’s 3rd Strongest Insurance Brand⁵ 4th largest Insurer in the world.³ 4th Most Valuab
Slide 6: Cross cyclical and comprehensive life insurance solutions
Cross cyclical and comprehensive life insurance solutions Comprehensive Product Portfolio • Non Participating Products • Participating products (Including four Annuity 12 21 Products) • Group products (incl. 12 6 • Riders one credit life)¹ In line with the provisions of the IRDAI (Insurance Products
Slide 7: Our products designed to suit customer life cycle
Our products designed to suit customer life cycle Participating Products Non-participating Products Source: Corporation data, Product list indicative and not exhaustive. 6
Slide 8: Business and Financial Updates
2 BUSINESS AND FINANCIAL UPDATES
Slide 9: Business performance parameters
Business performance parameters Amount INR Crore FY25 INR 4,88,148 Cr FY25 INR 1,69,112 Cr Total Group Business Total Premium Income + 2.75% - 1.28% Premium FY24 INR 4,75,070 Cr FY24 INR 1,71,302 Cr FY25 INR 62,495 Cr FY25 57.05% Individual New Business Market Share in - 1.82% + 8.28% Premium¹ Premi
Slide 10: Business performance parameters
Business performance parameters Amount INR Crore FY25 INR 35,294 Cr FY25 INR 5,88,604 Cr Weighted Received Total Individual New Premium + 0.56% - 6.59% FY24 INR 35,099 Cr Business Sum Assured FY24 INR 6,30,114 Cr FY25 8,48,123 FY25 24,420 Cr Total Number of Death + 2.27% Total Death Claim Paid + 7.9
Slide 11: Financial performance parameters
Financial performance parameters Amount INR Crore FY25 INR 48,151 Cr FY25 99.41% Claim Settlement Ratio - 0.49% Profit After Tax + 18.38% Death¹ FY24 INR 40,676 Cr FY24 99.90% (Absolute) FY25 2.11 FY25 1,77,82,975 + 0.13 Number of Policies sold - 12.80% Solvency (Absolute) (Individual) FY24 1.98 FY2
Slide 12: Performance ratios
Performance ratios FY25 8.65% - 0.28% FY25 6.93% Yield on Investment Yield on Investment - 1.09% (Policyholders Fund)² (Absolute) (Shareholders Fund)² (Absolute) FY24 8.93% FY24 8.02% FY25 1.46% FY25 89.71% - 0.55% - 0.13% Total Gross NPA Ratio¹ Conservation Ratio FY24 2.01% (Absolute) FY24 89.84% (
Slide 13: Actuarial Updates
frat Frers LIFE INSURANCE CORPORATION OF INDIA
Slide 14: Indian Embedded Value (IEV)
Indian Embedded Value (IEV) Embedded Value (INR Crore) CAGR 12.8% The IEV has increased by INR 49,532 Crore from March 2024 to March 2025, highlighting a growth of 6.81%. Sep-21 Mar-22 Mar-23 Mar-24 Mar-25 IEV 5,39,686 5,41,492 5,82,243 7,27,344 7,76,876 Source: Corporation data, . 13
Slide 15: INR in Crore
INR in Crore 14 Source: Corporation Data, Figures may not add up to total due to rounding off.
Slide 16: Build up of Indian Embedded Value
Build up of Indian Embedded Value INR in Crore Components FY24 FY25 A. Adjusted Net Worth (ANW) 69,443 1,20,258 B. Value of in-force (VIF) Business 6,57,902 6,56,617 C. Indian embedded value (IEV) (C=A+B) 7,27,344 7,76,876 Source: Corporation data. Figures may not add up to total due to rounding off
Slide 17: Analysis of movement in IEV
Analysis of movement in IEV Components FY 2025 (INR in Crore) Opening IEV 7,27,344 Expected return on Existing Business At Reference Rate 51,946 At Expected ‘real – world’ return in excess of Reference rate 18,146 Operating assumptions change 1,848 VoNB added during the period 10,011 Operating Exper
Slide 18: Sensitivity analysis
Sensitivity analysis Change in Change in New Sensitivity – Scenarios Indian Embedded Business Margin Value (Percent Points) For the Year End 3/2025 3/2025 Base results (INR in Crore) 7,76,876 17.6% An increase of 100 bps in the reference rates (1.0%) 4.7% Reference rates A decrease of 100 bps in the
Slide 19: Annualized Premium Equivalent (APE)/VNB/VNB Margin
Annualized Premium Equivalent (APE)/VNB/VNB Margin Amount INR Crore Year on Year Line of Business FY24 FY25 Growth A Individual Par 31,392 27,636 (11.96)% B Individual Non Par 7,041 10,581 50.28% 1 Individual Saving 3,812 4,792 25.71% 2 Protection 236 231 (2.12)% 3 Annuity 1,582 1,797 13.59% 4 ULIP
Slide 20: Focus on Increasing Share of Non-Par Products
Focus on Increasing Share of Non-Par Products Rising share of Non-Par in Individual APE1 Breakup of Individual APE (FY24) Breakup of Individual APE (FY25) Non- 72.31% Par Non- 81.68% Par Par 18.32% Par 27.69% Source: Corporation data; 1. Within India Business 19
Slide 21: VNB Walk FY24 to FY25
VNB Walk FY24 to FY25 Source: Corporation Data 20
Slide 22: Improvement in Persistency Ratios
Improvement in Persistency Ratios On Number of Policies Basis Persistency ratio by # policies 66.99% 64.12% 57.47% 59.32% 52.50% 52.66% 53.23% 50.31% 48.79% 48.59% 13th Month 25th Month 37th Month 49th Month 61st Month FY24 FY25 On Premium Basis Persistency ratio by #premium 77.66% 74.84% 71.00% 70.
Slide 23: Marketing and Distribution Strengths
4 MARKETING AND DISTRIBUTION STRENGTHS
Slide 24: Robust agency force
Robust agency force Largest agency force # Agents in lacs 16.36 14.80 14.87 14.15 13.47 12.81 12.09 10.70 Higher Vintage: 55.32% > 5 Years FY20 FY23 FY24 FY25 Others LIC LIC has dominant agency force – 47.61% of life insurance Industry. Source: Corporation data and life council data as on 31.03.2025
Slide 25: Exclusive agency network well trained leading to highest productivity
Exclusive agency network well trained leading to highest productivity Loyal agency network with a mix of youth and experienced professionals Mix of agents by age group Mix of agents by tenure Above 60 yrs 18-30 yrs 55.32% 13% 17% 44.68% 51-60 yrs 31-35 yrs 19% 13% 36-40 yrs 13% 41-50 yrs 25% Up to 5
Slide 26: Agents' training
Agents’ training Total number of training infrastructure - Training in Sales Training Centers and 9,831 Agents fulfilling the MDRT criteria¹ 732 Zonal Training Centers – 3,27,936 Total 5,31,024 agents 80% 76.84 % Agents recruited within the 18-40 trained in FY25 years age group Imparted training to
Slide 27: Bima Sakhi Yojana – Women Empowerment
Bima Sakhi Yojana – Women Empowerment LIC‘s Bima Sakhi Yojana launched by Hon’ble Prime Minister on 9th Dec 2024. LIC’s Bima Sakhi Yojana is a Mahila Career Agent (MCA) Scheme with following features • Aim to provide employment opportunities to 2 lakh women • Stipendiary scheme for three years • Sti
Slide 28: Feet on Street – LIC's Core Distribution Strength
Feet on Street – LIC’s Core Distribution Strength Organizational Structure Agents Training Infrastructure CO Office 2.33% Employees 8 Zonal Training Centers 8 Zonal Office 2.86% Employees 35 Sales Training Centers 113 Divisional Office¹ 13.66% Employees 113 Divisional Training Centers 2,130 Branch O
Slide 29: Differentiated business model with deep competitive moats
Differentiated business model with deep competitive moats Geographic Distribution of Individual Agents (%) 50.94% 51.02% 49.06% 48.98% FY24 FY25 Rural Urban Pan India presence of Agents which shows our feet on street Source Corporation data as on 31.03.2025 28
Slide 30: Enhancing focus on building Omni-channel distribution network
Enhancing focus on building Omni-channel distribution network Snapshot of LIC’s vast distribution capabilities Premium points +2,711 MICRO 14.87¹ lacs Agents exclusive to LIC 39,622³ Insurance Premium Points 1832 Corporate Agents 301 Brokers 162 Insurance Marketing Firms 36 Covering 89% districts vs
Slide 31: Enhancing focus on building Omni-channel distribution network
Enhancing focus on building Omni-channel distribution network Snapshot of vast distribution capabilities of LIC Distribution mix by Individual NBP (%) Individual NBP sourced in India via the Bancassurance and Alt channels (INR Crore)¹ FY 24 Particulars Others 3,496 +57.96% Banks 2.85% Alternates 0.9
Slide 32: Focus on Increasing Share of Non-Par Products
Focus on Increasing Share of Non-Par Products Breakup of Individual New Business Breakup by premium (FY25) Breakup by no. of policies (FY25) Non- Par Non- Par Non Par NB Par Non Par Particulars share Particulars Par 46.66% NBP share (# policy) 87.94% Term 0.25% Term 0.29% Health Insurance 0.02% Heal
Slide 33: Group Business Segment
Group Business Segment Amount INR Crore New Business Premium Market Share ( by premium) 1,64,926 1,64,262 FY24 FY24 FY25 FY25 72.30% 71.19% FY24 FY25 FY24 FY25 32 Source: Corporation data.
Slide 34: Achieving Operational Efficiencies
5 ACHIEVING OPERATIONAL EFFICIENCIES
Slide 35: Deeply entrenched into Bharat
Deeply entrenched into Bharat Extensive domestic distribution network… Assam Jammu & Arunachal Breakup of our Business State wise² Kashmir; Ladakh Pradesh Meghalaya Punjab Himachal Pradesh Chandigarh Uttarakhand Tripura Haryana Delhi Sikkim Uttar Pradesh Rajasthan Bihar Madhya Pradesh Jharkhand Guja
Slide 36: Share of women in policies issued
Share of women in policies issued Rising Share of women in policies sold¹ In 15 States/UTs, the share in number of policies bought by women to the total policies sold was higher than the all-India average of 34.2%² 44% 44% Top 5 and bottom 5 states/UTs 43% 43% 42% 30% 30% 28% 27% 23% Out of the tota
Slide 37: Technological innovations at LIC
Technological innovations at LIC Solutions designed to enhance operational efficiency and respond with speed to specific situations Digital App for Agents to process New Ananda APP – launched during COVID to enable Agents to do business without meeting customers face to face Business digitally Key s
Slide 38: Strengthening Digital Process – Empowering Policyholders
Strengthening Digital Process – Empowering Policyholders AI Chat Bot 1. Policy Status Application to facilitate submission of 2. First Unpaid Premium date Digital existence certificate for LIC docQ Application helps user to 3. Last paid premium date individual pension plan and staff submit documents
Slide 39: Empowering policyholders and agents in a digital world
Empowering policyholders and agents in a digital world Source Corporation data 38
Slide 40: Strengthening Digital Process – Customer Service
Strengthening Digital Process – Customer Service Online service requests Loan payment and repayment 8 1 e-NACH2 7 PAYMENT RELATED Change of Nomination & POLICY RELATED Assignment 2 Unit Linked fund switch PAN1 data registration 6 3 NEFT3 registration Aadhaar based change of address 5 4 Change of Mod
Slide 41: Strengthening Digital Process – Customer Service
Strengthening Digital Process – Customer Service Services offered Verified Automated conversation messages WhatsApp services started in Dec-22 22 and 2.19 crore customers opted/enabled until Streamlined March-25 Ease of customer interaction services Uptrend in LIC customer APP users Rising website r
Slide 42: Strengthening Digital Process – Driving Operational Efficiency
Strengthening Digital Process – Driving Operational Efficiency Increasing digital collection across channels (percentage to total transaction) 29.49% 28.39% Other App includes: Amazon Pay ,Bajaj 24.29% 23.93% Finserv, CRED, Free 22.46% 22.12% Charge, GPay , InstaPay, JustDial, Mobikwik, PhonePe and
Slide 43: Customer care – at our core philosophy
Customer care – at our core philosophy Settled total death claims of Rs. 24,420 crore in FY25 as against Rs. 22,625 crore in FY24. Claim settlement ratio (Death) in FY25 is 99.41% by number as against 99.90% in FY24. The number of policyholders complaints per 10,000 policies sold in FY25 is 41
Slide 44: Key Focus Areas
frat Frers LIFE INSURANCE CORPORATION OF INDIA
Slide 45: Strategy – Key Focus Areas
Strategy – Key Focus Areas #1I. Focus on digital transformation. #2I. Consolidate gain achieved in enhancing share of Non Par products within individual business. #3I. Focus on Agency transformation project. #4I. Developed strategy to regain/ enhance market share in certain categories and geographie
Slide 46: Appendix
frat Frers LIFE INSURANCE CORPORATION OF INDIA
Slide 47: Highly Experienced Management, Distinguished Board and Strong Corporate Governance framework
Highly Experienced Management, Distinguished Board and Strong Corporate Governance framework Shri Siddhartha Mohanty Dr. Parshant Kumar Goyal Chief Executive Officer & Shri M Jagannath Shri Tablesh Pandey Government Nominee Managing Director Managing Director Managing Director Director Shri Sat Pal
Slide 48: Financials - Standalone Balance Sheet
Financials - Standalone Balance Sheet (INR Crore) For the Year ended Particulars March 31, 2024(Standalone) March 31, 2025(Standalone) Sources of funds Shareholders' funds: Share capital 6,32,499.77 6,32,499.77 Reserves and surplus 75,74,008.41 1,20,09,576.31 Credit/(debit) fair value change account
Slide 49: Financials - Standalone Statement of Revenue (Policyholders' Account)
Financials - Standalone Statement of Revenue (Policyholders’ Account) (INR lakhs) For the year ended Particulars March 31, 2024(Standalone) March 31, 2025(Standalone) Premiums earned - net (a) Premium 4,75,75,191.97 4.88.84.892.02 (b) Reinsurance ceded (68,233.92) (70075.78) Sub-total 4,75,06,958.05
Slide 50: Financials – Standalone Statement of Profit & Loss (Shareholders' Account)
Financials – Standalone Statement of Profit & Loss (Shareholders’ Account) (INR lakhs) For the year ended Particulars March 31, 2024(Standalone) March 31, 2025(Standalone) 40,02,196.20 Amounts transferred from/to the Policyholders account (Technical Account) 49,50,672.44 Income from Investments (a)
Slide 51: LIC – Group Structure
LIC – Group Structure Foreign branches1 Subsidiaries Associates Country Entity Country Entity Stake held (%) Country Entity Stake held (%) Fiji Branch 100.00% 45.24%3 Mauritius Branch 100.00% 5.38%3 United Kingdom Branch 99.66%2 49.24%4 Equity Participation 100.00% Country Entity Stake held (%) 29.8
Slide 52: India is one of the fastest growing major economy
India is one of the fastest growing major economy (GDP Growth, Percentage year-on-year) 10 5 0 -5 -10 -15 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023E 2024P 2025P India 7.4 8 8.3 7 6.1 4.2 -8 9 7.2 6.7 6.5 6.5 China 7.3 6.9 6.8 6.9 6.7 6 2.3 8.1 3.0 5.2 4.6 4.1 Japan 0.4 1.2 0.5 2.2 0.3 0.3 -4
Slide 53: Life Insurance Premium per Capita
Higher income = Higher wealth/education = More demand for Insurance 2.5k Life Insurance Premium per Capita ($, current) Japan France 2.0k Korea, Rep. Italy United States 1.5k Germany 1.0k Israel Netherlands Spain Australia .5k Portugal Slovenia Thailand Chile China Slovak Republic India Philippines
Slide 54: Household savings to increase
Household savings to increase Household Savings (% of GDP) 30.00% 25.20% 25.00% 23.60% 23.60% 23.10% 22.40% 22.50% 22.70% 20.30% 19.60% 19.30% 20.30% 20.21% Household 20.00% 19.10% 18.00% 18.10% 18.22% saving as percentage 15.00% of GDP is 18.22% in fiscal year 10.00% 2023 5.00% 0.00% FY08 FY09 FY10
Slide 55: Share of life insurance in incremental household financial saving
Share of life insurance in incremental household financial saving 120.00% 100.00% 9.75% 10.29% 10.41% 12.25% 9.46% 13.22% 2.09% 6.02% 6.72% 6.70% 2.65% 6.15% 80.00% 12.45% 7.99% 12.28% 12.16% 10.32% 23.57% 16.18% 21.07% 17.86% 19.48% 21.13% 60.00% 17.96% 18.26% 14.25% 18.18% 16.88% 40.00% 18.22% 16.
Slide 56: Preference for Financial savings - Faster growth for Life Insurance
Preference for Financial savings - Faster growth for Life Insurance 10-Year(FY 2014 to FY 2023) ~ 2,72,40,712 Cr Nominal GDP ~10.3% CAGR ~ 49,63,212 Cr Household (HH) ~9.0% CAGR (18.2% GDP) Savings ~ 29,73,636 Cr Gross Savings in ~10.7% CAGR (59.91% HH savings) Financial Assets ~ 5,40,561 Cr Annual
Slide 57: Protection gap for different countries
Protection gap for different countries 90% 83% 80% 76% 74% 71% 70% 70% 61% 60% 55% 55% 54% India’s protection 50% gap was 83% as of 41% 2019, the highest 40% among all countries in Asia- Pacific¹ 30% 20% 10% 0% India Indonesia Malaysia Thialand China Japan South Korea Singapore Australia Hong Kong P
Slide 58: Well positioned to ride the growth in a highly underinsured market
Life Insurance Penetration %age FY 2022 Insurance Density (in US$)1 FY 2022 18 9000 16.7 8007 8000 16 7000 14 6074 6000 12 5000 10 9.1 8.2 8.1 4000 3669 8 7.4 3000 2730 2656 5.9 6 5.5 5.4 2239 2017 1942 2000 1705 4 3.7 1182 3.4 3 1000 614 609 432 2 255 235 184 70 0 0 Hong South Taiwan United Singapo
Slide 59: Indian Insurance Industry by premium and policies breakup – FY25
Indian Insurance Industry by premium and policies breakup – FY25 By Total New Business Premium By Total Number of Policies 1,70,667 Crore 0.924 Crore 2,26,670 1.781 Crore 34.17% Crore 42.95% 57.05% 65.83% Private Sector Public Sector (LIC) Private Sector Public Sector (LIC) Individual NB Premium Ind
Slide 60: Embedding ESG in our business - building a sustainable future for the communities
Embedding ESG in our business - building a sustainable future for the communities LIC has integrated the SDGs with key areas of their business operations. LIC initiatives have ensured a positive contribution to at least 14 of the 17 SDGs 51.02% agents in India reside in rural areas “Bima Gram” ini
Slide 61: Embedding ESG in our business - building a sustainable future for the communities
Embedding ESG in our business - building a sustainable future for the communities LIC has integrated the SDGs with key areas of their business operations. LIC initiatives have ensured a positive contribution to at least 14 of the 17 SDGs Support to various other sanitation projects by LIC GJF. C
Slide 62: Embedding ESG in our business - building a sustainable future for the communities
Embedding ESG in our business - building a sustainable future for the communities LIC has integrated the SDGs with key areas of their business operations. LIC initiatives have ensured a positive contribution to at least 14 of the 17 SDGs Outstanding investments worth INR 14.1bn¹ in renewable energy
Slide 63: Committed to ESG initiatives across the organization
Committed to ESG initiatives across the organization Roof top solar capacity installed (KW) Total Reduction of carbon emissions (in tons) 8,110 9,218 6,575 5,454 4,471 3,376 3,826 3,141 2,856 2,966 2,254 2,024 2,051 1,812 FY 2019 FY 2020 FY 2021 FY 2022 FY2023 FY2024 FY2025 FY 2019 FY 2020 FY 2021 F
Slide 64: Awards & Accolades
Awards & Accolades 63 Source: Corporation data as at 31.03.2025
Slide 65: Glossary
Glossary New Business APE: The sum annualized first year premiums on regular premium policies, and 10.00% of single premiums, written by the Company during the fiscal year from both retail and group customers. New Business Premium NBP: Insurance premium that is due in the first policy year of a li
Slide 66: Abbreviation
Abbreviation Term Description Term Description GWP Gross Written Premium Opex Operating Expenses (excluding commission) NBP New Business Premium CAGR Compounded Annual Growth Rate NOP Number of Policies GDP Gross Domestic Product APE Annualized Premium Equivalent INR (Rs.) Indian Rupees IRP Individu
Slide 67: Disclaimer
Disclaimer Except for the historical information contained herein, statements in this presentation which contain words or phrases such as ‘will’, ‘would’, ‘indicating’, ‘expected to’ etc., and similar expressions or variations of such expressions may constitute ‘forward-looking statements’. These fo
Slide 68: Thank You
THANK YOU
Life Insurance Corporation of India — FY2025 Earnings Presentation on 6ix