Life Insurance Corp. Of India · NSE:LICI
Life Insurance Corp. Of India — Life Insurance Corporation of India — 9M FY25 Earnings Presentation
66 slides from Life Insurance Corp. Of India's earnings presentation, Feb 7, 2025
Slide 1: Stock exchange cover letter for analyst call presentation
Ref. No.: LIC/SE/2024-25/167 Date: February 07, 2025 To The Manager The Manager Listing Department, Listing Department, BSE Limited, National Stock Exchange of India Ltd., th Phiroze Jeejeebhoy Tower, Exchange Plaza, 5 Floor, Plot C/1, Dalal Street, G Block, Bandra Kurla Complex, Mumbai-400001 Mumba
Slide 2: Investor Presentation 9M FY25
INVESTOR PRESENTATION Q3 -FY 25 Investor Presentation 9M FY25 February 7, 2025 February 7, 2025
Slide 3: Agenda
AGENDA INTRODUCTION TO LIC ACHIEVING OPERATIONAL 1 5 EFFICIENCIES 2 BUSINESS AND FINANCIAL UPDATES 6 KEY FOCUS AREAS ACTUARIAL UPDATES APPENDIX 3 7 MARKETING AND DISTRIBUTION STRENGTHS 8 4
Slide 4: Introduction to LIC
1 INTRODUCTION TO LIC
Slide 5: Largest life insurer in India – Clear market leader
Largest life insurer in India – Clear market leader Top public sector company in India by Market Capitalisation.1 Ranked as the world’s 23rd Strongest Brand Globally in 2024.² Fourth largest Insurer in the world.³ 10th Most Valuable Indian Brand 2024⁴ World’s No. 1 Strongest Insurance Brand⁵ 4 Sourc
Slide 6: Cross cyclical and comprehensive life insurance solutions
Cross cyclical and comprehensive life insurance solutions Comprehensive Product Portfolio • Non Participating Products • Participating products 10 14 (Including two Annuity Products) • Group products (incl. 8 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 2 FINANCIAL UPDATES BUSINESS AND FINANCIAL UPDATES
Slide 9: Business performance parameters
Business performance parameters Amount INR Crore 9M-FY25 INR 3,40,563 Cr 9M-FY25 INR 1,19,147 Cr Total Group Business Total Premium Income +5.51% +5.39% Premium 9M-FY24 INR 3,22,776 Cr 9M-FY24 INR 1,13,057 Cr 9M-FY25 INR 42,441 Cr 9M-FY25 57.42% Individual New Business Market Share in - 1.48% +9.73%
Slide 10: Business performance parameters
Business performance parameters Amount INR Crore 9M-FY25 INR 24,268 Cr 9M-FY25 INR 3,82,045 Cr Weighted Received Total New Business Sum Premium +4.63 % -2.88% 9M-FY24 INR 23,194 Cr Assured 9M-FY24 INR 3,93,384 Cr 9M-FY25 6,22,226 9M-FY25 17,588 Cr Total Number of Death Claims (Individual) + 4.02% To
Slide 11: Financial performance parameters
Financial performance parameters Amount INR Crore 9M-FY25 INR 29,138 Cr 9M-FY25 98.66% Claim Settlement Ratio +0.20% Profit After Tax +8.27% Death 9M-FY24 INR 26,913 Cr 9M-FY24 98.46% (Absolute) 9M-FY25 2.02 9M-FY25 1,17,10,505 +0.09 Number of Policies sold -6.73% Solvency 9M-FY24 1.93 (Absolute) (I
Slide 12: Performance ratios
Performance ratios 9M-FY25 8.82% - 0.32% 9M-FY25 6.94% Yield on Investment Yield on Investment - 0.96% (Policyholders Fund)² 9M-FY24 9.14% (Absolute) (Shareholders Fund)² 9M-FY24 7.90% (Absolute) 9M-FY25 1.64% 9M-FY25 91.03% - 0.51% -0.07% Total Gross NPA Ratio¹ Conservation Ratio 9M-FY24 2.15% (Abs
Slide 13: Actuarial Updates
3 3 ACTUARIAL UPDATES ACTUARIAL UPDATES
Slide 14: Indian Embedded Value (IEV)
Indian Embedded Value (IEV) Embedded Value (INR Crore) +24.01% The IEV has surged by INR 1,59,111 Crore from September 2023 to September 2024, highlighting a remarkable growth trajectory. Sep-21 Mar-22 Sep-22 Mar-23 Sep-23 Mar-24 Sep-24 IEV 5,39,686 5,41,492 5,44,291 5,82,243 6,62,605 7,27,344 8,21,
Slide 15: Annualized Premium Equivalent (APE)
Annualized Premium Equivalent (APE) Amount INR Crore Year on Year Line of Business 9M FY24 9M FY25 Growth A Individual Par 20,203 17,799 (11.90%) B Individual Non Par 3,299 6,813 106.52% 1 Individual Saving 1,449 3,161 118.15% 2 Protection 127 149 17.32% 3 Annuity 991 1,228 23.92% 4 ULIP 732 2,275 2
Slide 16: 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 (9M FY24) Breakup of Individual APE (9M FY25) Non- Par 72.32% Non- Par 85.96% 14.04% Par Par 27.68% Source: Corporation data; 1. Within India Business 15
Slide 17: Value of New Business (VNB)
Value of New Business (VNB) Amounts INR crore LIC of India 9M FY24 9M FY25 Net VNB 5,938 6,477 Net VNB Margin 16.6% 17.1% Individual Business Group Business 9M FY24 9M FY25 9M FY24 9M FY25 Net VNB 4,178 4,942 Net VNB 1,760 1,535 Net VNB Margin 17.8% 20.1% Net VNB Margin 14.3% 11.5% Par Business Non-
Slide 18: VNB Walk 9M FY24 to 9M FY25
VNB Walk 9M FY24 to 9M FY25 Source: Corporation Data 17
Slide 19: Trend in Persistency Ratios
Trend in Persistency Ratios On Number of Policies Basis Persistency ratio by # policies 67.22% 66.47% 58.59% 60.10% 54.80% 53.84% 52.01% 51.17% 50.23% 49.22% 13th Month 25th Month 37th Month 49th Month 61st Month 9M FY24 9M FY25 On Premium Basis Persistency ratio by #premium 78.00% 76.66% 71.92% 71.
Slide 20: Policyholders Age and Policy Term
Policyholders Age and Policy Term Average Age in Years1 Average Policy Term in Years1 57 73 37 37 32 27 30 24 16 2.66 Annuity Protection ULIP Non Par Savings Par Annuity Protection ULIP Non Par Savings Par Source Corporation data as on 31.12.2024, Note ¹Age and Term for Individual New Business polic
Slide 21: Marketing and Distribution Strengths
4 MARKETING AND 4 DISTRIBUTION MARKETING AND STRENGTHS DISTRIBUTION STRENGTHS
Slide 22: Robust agency force
Robust agency force Largest agency force # Agents in lacs 15.75 14.80 14.15 14.19 13.47 12.81 12.09 10.70 Higher Vintage: 53.98% > 5 Years FY20 FY23 FY24 9FY25 Others LIC LIC has dominant agency force – 47.40% of life insurance Industry. Source: Corporation data and life council data as on 31.12.202
Slide 23: 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 13% 11% 53.98% 31-35 yrs 10% 51-60 yrs 25% 36-40 yrs 12% 46.02% 41-50 yrs Up to 5 Yea
Slide 24: Agents' training
Agents’ training 9,831 Agents fulfilling the MDRT criteria¹ Total number of training infrastructure - Training in Sales Training Centers and 732 Zonal Training Centers – 2,60,895 Total 3,68,150 agents trained 80% 77.40 % Agents recruited within the 18-40 years age group in 9MFY25 5 47.40 % Market sh
Slide 25: 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 women in the area of insurance sales as an agent • Stip
Slide 26: 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 2.92% Employees 35 Sales Training Centers 113 Divisional Office¹ 13.75% Employees 113 Divisional Training Centers 2,130 Branch O
Slide 27: Differentiated business model with deep competitive moats
Differentiated business model with deep competitive moats Geographic Distribution of Individual Agents (%) 60.00% 56.21% 43.79% 40.00% 9M FY24 9M FY25 Rural Urban Pan India presence of Agents which shows our feet on street Source Corporation data as on 31.12.2024 26
Slide 28: 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 +2,703 MICRO 14.19¹ lacs Agents exclusive to LIC 39,576³ Insurance Premium Points 852 Corporate Agents 309 Brokers 154 Insurance Marketing Firms 36 Covering 92% districts vs
Slide 29: 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 banca and Alt channels (INR Crore)¹ 9M FY 24 Particulars Others Banca 2.86% +31.06% 2,003.95 Alternate 1.10%
Slide 30: Focus on Increasing Share of Non-Par Products
Focus on Increasing Share of Non-Par Products Breakup of Individual New Business Breakup by premium (9M FY25) Breakup by no. of policies (9M FY25) Non- Par Non- Par Non Par NB Par Non Par Particulars share Particulars Par 48.06% NBP share (# policy) 88.18% Term 0.23% Term 0.27% Health Insurance 0.03
Slide 31: Group Business Segment
Group Business Segment Amount INR Crore New Business Premium Market Share ( by premium) 9M FY24 9M FY24 9M FY25 9M FY25 1,15,576 1,08,796 72.24% 71.70% 9M FY24 9M FY25 9M FY24 9M FY25 30 Source: Corporation data.
Slide 32: Achieving Operational Efficiencies
5 ACHIEVING OPERATIONAL 5 EFFICIENCIES ACHIEVING OPERATIONAL EFFICIENCIES
Slide 33: 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 34: 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 35: 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 36: 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 37: Empowering policyholders and agents in a digital world
Empowering policyholders and agents in a digital world Source Corporation data 36
Slide 38: Strengthening Digital Process – Customer Service
Strengthening Digital Process – Customer Service Online service requests Loan payment and repayment 8 1 e-NACH2 Change of Nomination & 7 PAYMENT RELATED 2 POLICY RELATED Assignment Unit Linked fund switch PAN1 data registration 6 3 NEFT3 registration Aadhaar based change of address 5 4 Change of Mod
Slide 39: Strengthening Digital Process – Customer Service
Strengthening Digital Process – Customer Service Services offered Verified Automated conversation messages WhatsApp services started in Dec-22 22 and 2.14 crore customers opted/enabled until Streamlined Dec-24 Ease of customer interaction services Uptrend in LIC customer APP users Rising website reg
Slide 40: Strengthening Digital Process – Driving Operational Efficiency
Strengthening Digital Process – Driving Operational Efficiency Increasing digital collection across channels (percentage to total transaction) 29.60% 28.39% Other App includes: Amazon Pay ,Bajaj Finserv, CRED, Free 24.29% 23.90% Charge, GPay , 22.46% InstaPay, JustDial, 22.08% Mobikwik, PhonePe and
Slide 41: Customer care – at our core philosophy
Customer care – at our core philosophy Settled total death claims of Rs.17,588 crore in 9MFY25 as against Rs.16,288 crore in 9MFY24. Claim settlement ratio (Death) in 9MFY25 is 98.66% by number as against 98.46% in 9MFY24. The number of policyholders complaints per 10,000 policies sold in 9MFY
Slide 42: Key Focus Areas
6 6 KEY FOCUS AREAS KEY FOCUS AREAS
Slide 43: Strategy – Key Focus Areas
Strategy – Key Focus Areas #1I. Focus on Enhancing Market Share – across categories. #2I. Diversify Product Mix – enhancing Non Par Share within individual business. #3I. Launch new products to plug any gap in product portfolio. #4I. Maintain focus on agency channel while developing the Banca and Al
Slide 44: Appendix
7 6 KEY FOCUS AREAS APPENDIX APPENDIX
Slide 45: Highly Experienced Management, Distinguished Board and Strong Corporate Governance framework
Highly Experienced Management, Distinguished Board and Strong Corporate Governance framework Shri Siddhartha Mohanty Dr. M. P. Tangirala Chief Executive Officer & Government Nominee Shri M Jagannath Shri Tablesh Pandey Managing Director Managing Director Managing Director Director Shri Sat Pal Bhano
Slide 46: Financials - Standalone Balance Sheet
Financials - Standalone Balance Sheet (INR lakhs) For the Year ended For the nine months ended Particulars March 31, 2023(Standalone) March 31, 2024(Standalone) Dec. 31, 2023(Standalone) Dec.31, 2024(Standalone) Sources of funds Shareholders' funds: Share capital 6,32,499.77 6,32,499.77 6,32,499.77
Slide 47: Financials - Standalone Statement of Revenue (Policyholders' Account)
Financials - Standalone Statement of Revenue (Policyholders’ Account) (INR lakhs) For the year ended For the Nine months ended Particulars March 31, 2023(Standalone) March 31, 2024(Standalone) Dec. 31, 2023(Standalone) Dec. 31, 2024(Standalone) Premiums earned - net (a) Premium 4,74,66,813.63 4,75,7
Slide 48: Financials – Standalone Statement of Profit & Loss (Shareholders' Account)
Financials – Standalone Statement of Profit & Loss (Shareholders’ Account) (INR lakhs) For the year ended For the nine months ended Particulars March 31, 2023(Standalone) March 31, 2024(Standalone) Dec.31, 2023(Standalone) Dec. 31, 2024(Standalone) Amounts transferred from/to the Policyholders accou
Slide 49: 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 50: 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 51: Life Insurance Premium per Capita
Higher income = Higher wealth/education = More demand for Insurance 2.5k Life Insurance Premium per Capita ($, current) Japan France 2.0k Korea, Rep. Italy United States 1.5k Germany 1.0k Israel Netherlands Spain Australia .5k Portugal Slovenia Thailand Chile China Slovak Republic India Philippines
Slide 52: Household savings to increase
Household savings to increase Household Savings (% of GDP) 30.00% 25.20% 25.00% 23.60% 23.60% 23.10% 22.40% 22.50% 22.70% 20.30% 19.60% 19.30% 20.30% 20.21% Household 20.00% 19.10% 18.00% 18.10% 18.22% saving as percentage 15.00% of GDP is 18.22% in fiscal year 10.00% 2023 5.00% 0.00% FY08 FY09 FY10
Slide 53: Share of life insurance in incremental household financial saving
Share of life insurance in incremental household financial saving 120.00% 100.00% 9.75% 10.29% 10.41% 12.25% 9.46% 13.22% 2.09% 6.02% 6.72% 6.70% 2.65% 6.15% 80.00% 12.45% 7.99% 12.28% 12.16% 10.32% 23.57% 16.18% 21.07% 17.86% 19.48% 21.13% 60.00% 17.96% 18.26% 14.25% 18.18% 16.88% 40.00% 18.22% 16.
Slide 54: Preference for Financial savings - Faster growth for Life Insurance
Preference for Financial savings - Faster growth for Life Insurance 10-Year(FY 2014 to FY 2023) ~ 2,72,40,712 Cr Nominal GDP ~10.3% CAGR ~ 49,63,212 Cr Household (HH) ~9.0% CAGR (18.2% GDP) Savings ~ 29,73,636 Cr Gross Savings in ~10.7% CAGR (59.91% HH savings) Financial Assets ~ 5,40,561 Cr Annual
Slide 55: Protection gap for different countries
Protection gap for different countries 90% 83% 80% 76% 74% 71% 70% 70% 61% 60% 55% 55% 54% India’s protection 50% gap was 83% as of 41% 2019, the highest 40% among all countries in Asia- Pacific¹ 30% 20% 10% 0% India Indonesia Malaysia Thialand China Japan South Korea Singapore Australia Hong Kong P
Slide 56: Well positioned to ride the growth in a highly underinsured market
Life Insurance Penetration %age FY 2022 Insurance Density (in US$)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 57: Indian Insurance Industry by premium and policies breakup - FY 2024
Indian Insurance Industry by premium and policies breakup - FY 2024 By Total New Business Premium By Total Number of Policies 1,55,437 0.879 Crore Crore 30.09% 2,22,523 41.13% 2.043 Crore Crore 58.87% 69.91% Private Sector Public Sector (LIC) Private Sector Public Sector (LIC) Individual NB Premium
Slide 58: 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 40.00% agents in India reside in rural areas “Bima Gram” ini
Slide 59: 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 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 Outstanding investments worth INR 14.1bn¹ in renewable energy
Slide 61: 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) 7,620 8,698 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 9MFY25 FY 2019 FY 2020 FY 2021 F
Slide 62: Awards & Accolades
Awards & Accolades 61 Source: Corporation data as at 31.12.2024
Slide 63: 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 64: 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 65: 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 66: Thank You
THANK YOU —®
Life Insurance Corporation of India — 9M FY25 Earnings Presentation on 6ix