Life Insurance Corp. Of India · NSE:LICI
Life Insurance Corp. Of India — Life Insurance Corporation of India — H1 FY2025 Earnings Presentation
68 slides from Life Insurance Corp. Of India's earnings presentation, Nov 8, 2024
Slide 1: Stock exchange cover letter for analyst call presentation
Ref. No.: LIC/SE/2024-25/119 Date: November 08, 2024 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 H1FY2025
INVESTOR PRESENTATION H1FY2025 November 8, 2024
Slide 3: Agenda
Agenda 1 – INTRODUCTION TO LIC 2 – BUSINESS AND FINANCIAL UPDATES 3 – ACTUARIAL UPDATES 4 – MARKETING AND DISTRIBUTION STRENGTHS 5 – ACHIEVING OPERATIONAL EFFICIENCIES 6 – KEY FOCUS AREAS APPENDIX
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 LIC of India is the WORLD's No.1 strongest Insurance Brand.1 Ranks 107th in the Fortune Global 500 list 2023. Ranked as the world’s 23rd Strongest Brand Globally in 2024.² Ranks 3rd in the Fortune India 500 list 2023. Life Insurance Corporation of
Slide 6: Wide Bouquet of Products with New Product Launches
Wide Bouquet of Products with New Product Launches New Non-Par Comprehensive suite of products as Product Comprehensive suite of products as on 01.04.2024 Launched in on 30.09.2024 H1FY 25 16 24 Non-Linked 4 16 28 Individual Pure Risk Participating Non-Par products Premium (Term Participating Non-Pa
Slide 7: New products launched during H1FY2025
New products launched during H1FY2025 Name of LIC’s Yuva Term LIC’s Digi Term LIC’s Yuva Credit LIC’s Digi Credit Products Plan Plan Life Plan Life Plan Introduction 06.08.2024 06.08.2024 06.08.2024 06.08.2024 date Par/Non Par Non-Par Non-Par Non-Par Non-Par Product Term Term Term Term Categories Fe
Slide 8: 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. Note: The product logos displayed above correspond to the existing products as of September 30, 2024. 7
Slide 9: Business and Financial Updates
BUSINESS AND 2 FINANCIAL UPDATES
Slide 10: Business performance parameters
Business performance parameters Amount INR Crore H1 FY25 INR 2,33,671 Cr H1 FY25 61.07% Market Share in +2.57 % Total Premium Income +13.56 % Premium¹ (Absolute) H1 FY24 INR 2,05,760 Cr H1 FY24 58.50% H1 FY25 INR 29,538 Cr H1 FY25 INR 88,975 Cr Individual New Business Total Group Business +17.29% +2
Slide 11: Business performance parameters
Business performance parameters Amount INR Crore H1 FY25 INR 16,700 Cr H1 FY25 INR 2,81,870 Cr Weighted Received Total New Business Sum Premium +14.07 % +13.82% H1 FY24 INR 14,640 Cr Assured H1 FY24 INR 2,47,650 Cr H1 FY25 4,14,330 H1 FY25 11,645 Cr Total Number of Death +3.67 % Total Death Claim Pa
Slide 12: Financial performance parameters
Financial performance parameters Amount INR Crore H1 FY25 INR 18,082 Cr H1 FY25 97.33 % Profit After Tax¹ +3.51% Claim Settlement Ratio +0.05% H1 FY24 INR 17,469 Cr Death (Absolute) H1 FY24 97.28% H1 FY25 2,45,124 H1 FY25 1.98 +0.08 Policies sold by BANCA - 15.40% Solvency (Absolute) & Alternate Cha
Slide 13: Performance ratios
Performance ratios H1 FY25 9.02% -0.04% H1 FY25 6.86% Yield on Investment Yield on Investment -0.59% (Policyholders Fund)² (Absolute) (Shareholders Fund)² (Absolute H1 FY24 9.06% H1 FY24 7.45% H1 FY25 1.72% H1 FY25 90.97% -0.71% -1.15% Total Gross NPA Ratio¹ Conservation Ratio H1 FY24 2.43% (Absolut
Slide 14: Actuarial Updates
Eluic ards LIFE INSURANCE CORPORATION OF INDIA
Slide 15: 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 16: Build up of Indian Embedded Value
Build up of Indian Embedded Value INR in Crore Components H1FY24 H1FY25 A. Adjusted Net Worth (ANW) 61,199 87,743 B. Value of in-force (VIF) Business 6,01,406 7,33,973 C. Indian embedded value (IEV) (C=A+B) 6,62,605 8,21,716 Source: Corporation data. Figures may not add up to total due to rounding o
Slide 17: Sensitivity analysis
Sensitivity analysis Change in Indian Change in New Business Sensitivity – Scenarios Embedded Value Margin (Percent) For the Year End 09/2024 09/2024 Base results (INR in Crore) 8,21,716 16.2% Reference An increase of 100 bps in the reference rates (0.5%) 4.6% rates A decrease of 100 bps in the refe
Slide 18: Annualized Premium Equivalent (APE)
Annualized Premium Equivalent (APE) INR Crore Year on Year Line of Business H1FY24 H1FY25 Growth A Individual Par 13,063 13,385 2.46% B Individual Non Par 1,575 4,778 203.37% 1 Individual Saving 381 2,289 500.79% 2 Protection 82 99 20.73% 3 Annuity 649 917 41.29% 4 ULIP 463 1,472 217.93% C Total Ind
Slide 19: 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 (H1FY24) Breakup of Individual APE (H1FY25) Non- Par 73.69% Non- Par 89.24% 10.76% Par Par 26.31% Source: Corporation data; 1. Within India Business 18
Slide 20: Value of New Business (VNB)
Value of New Business (VNB) Amounts INR crore LIC of India H1FY24 H1FY25 Net VNB² 3,304 4,551 Net VNB Margin 14.6% 16.2% Individual Business Group Business H1FY24 H1FY25 H1FY24 H1FY25 Net VNB 2,137 3,444 Net VNB 1,167 1,107 Net VNB Margin 14.6% 19.0% Net VNB Margin 14.6% 11.2% Par Business Non-Par B
Slide 21: VNB Walk H1FY24 to H1FY25
VNB Walk H1FY24 to H1FY25 Source: Corporation Data 20
Slide 22: Improvement in Persistency Ratios
Improvement in Persistency Ratios Persistency ratios by number of policies Persistency ratio by # policies 66.80% 67.23% 58.79% 59.73% 57.61% 54.06% 51.73% 53.84% 50.35% 48.92% 13th Month 25th Month 37th Month 49th Month 61st Month H1FY24 H1FY25 Persistency ratios by premium Persistency ratio by #pr
Slide 23: Policyholders Age and Policy Term
Policyholders Age and Policy Term Average Age in Years1 Average Policy Term in Years1 57 72 37 37 31 27 30 24 16 2.99 Annuity Protection ULIP Non Par Savings Par Protection ULIP Non Par Savings 3 Par Annuity Source Corporation data as on 30.9.2024, Note ¹Age and Term for Individual New Business poli
Slide 24: Marketing and Distribution Strengths
MARKETING AND 4 DISTRIBUTION STRENGTHS
Slide 25: Robust agency force
Robust agency force Largest agency force # Agents in lacs 15.88 14.80 14.15 14.40 13.47 12.81 12.09 10.70 Higher Vintage: 54.48% > 5 Years FY20 FY23 FY24 H1FY25 Others LIC LIC has dominant agency force – 47.56% of life insurance Industry. Source: Corporation data and life council data as on 30.09.20
Slide 26: 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% 54.48% 31-35 yrs 11% 51-60 yrs 24% 45.52% 36-40 yrs 12% 41-50 yrs Up to 5 Yea
Slide 27: Agents' training
Agents’ training Training in Sales Training 3,261 Agents fulfilling the MDRT Total number of training criteria¹ Centres and Zonal Training infrastructure - 732 Centres – 1,83,172 Total 2,48,832 agents trained in 80% 78.38 % Agents recruited within H1FY25 the 18-40 years age group Imparted training t
Slide 28: Feet on Street – LIC's Core Distribution Strength
Feet on Street – LIC’s Core Distribution Strength Organizational Structure Agents Training Infrastructure CO 2.19% Employees Office 8 Zonal Training Centers 8 Zonal Office 2.93% Employees 35 Sales Training Centers 113 Divisional Office² 13.78% 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 (%) 60.77% 53.51% 46.49% 39.23% H1FY24 H1FY25 Rural Urban Pan India presence of Agents which shows our feet on street Source Corporation data as on 30.09.2024 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 +2,752 MICRO 14.40¹ lacs Agents exclusive to LIC 40,032³ Insurance Premium Points 83 2 Corporate Agents 301 Brokers 153 Insurance Marketing Firms 36 Covering 92% 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 Banca & Alt channel (INR Crore)² H1FY 24 Particulars Others 1,207.5 Banca 2.58 % +30.70% Digital Marketing 0.
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 (H1FY25) Breakup by no. of policies (H1FY25) Non- Par Non- Par Non Par NB Non Par Par Par Particulars Particulars share 49.86% NBP share (# policy) 89.39% Protection 0.20 % Protection 0.21% Health Ins
Slide 33: Group Business Segment
Group Business Segment INR in Crore New Business Premium Market Share ( by premium) 74.77% 70.26% H1FY24 H1FY24 86,056 H1FY25 H1FY25 67,505 H1FY24 H1FY25 H1FY24 H1FY25 Source: Corporation data. 32
Slide 34: Achieving Operational Efficiencies
ACHIEVING OPERATIONAL 5 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/UTs² 43% 43% 42% 30% 30% 28% 27% 23% Out of the tot
Slide 37: Technological innovations at LIC
Technological innovations at LIC Solutions designed to enhanced operational efficiency and respond with speed to specific situations Ananda APP – launched during COVID to enable Agents to do business without meeting Digital App for Agents to process New Business digitally customers face to face Key
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 2.05 crore customers opted/enabled until Streamlined June-24 Ease of customer interaction services Uptrend in LIC customer APP users Rising website re
Slide 42: Strengthening Digital Process – Driving Operational Efficiency
Strengthening Digital Process – Driving Operational Efficiency Increasing digital collection across channels (percentage to total transaction) 28.92% 29.39% Other App includes: Amazon Pay ,Bajaj Finserv, CRED, Free 24.02% 23.83% Charge, GPay , 22.23% 22.43% 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. 11,645 crore in H1FY25 as against Rs. 10,826 crore in H1FY24. Claim settlement ratio (Death) in H1FY25 is 97.33% by number as against 97.28% in H1FY24. The number of policyholders complaints per 10,000 policies sold in H1
Slide 44: Key Focus Areas
Eluic ards LIFE INSURANCE CORPORATION OF INDIA
Slide 45: 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 46: Appendix
Eluic ards LIFE INSURANCE CORPORATION OF INDIA
Slide 47: Highly Experienced Management, Distinguished Board and Strong Corporate Governance
Highly Experienced Management, Distinguished Board and Strong Corporate Governance framework Shri Siddhartha Mohanty Dr. M. P. Tangirala Chief Executive Officer & Shri M Jagannath Shri Tablesh Pandey Government Nominee Managing Director Managing Director Managing Director Director Shri Sat Pal Bhano
Slide 48: Financials - Standalone Balance Sheet
Financials - Standalone Balance Sheet (INR lakhs) For the Year ended For the half year ended September 30, September30, Particulars March 31, 2023(Standalone) March 31, 2024(Standalone) 2023(Standalone) 2024(Standalone) Sources of funds Shareholders' funds: Share capital 6,32,499.77 6,32,499.77 6,32
Slide 49: Financials - Standalone Statement of Revenue (Policyholders' Account)
Financials - Standalone Statement of Revenue (Policyholders’ Account) (INR lakhs) For the year ended For the half year ended Particulars March 31, 2023(Standalone) March 31, 2024(Standalone) Sept 30, 2023(Standalone) Sept 30, 2024(Standalone) Premiums earned - net (a) Premium 4,74,66,813.63 4,75,75,
Slide 50: Financials – Standalone Statement of Profit & Loss (Shareholders' Account)
Financials – Standalone Statement of Profit & Loss (Shareholders’ Account) (INR lakhs) For the year ended For the half year ended Particulars March 31, 2023(Standalone) March 31, 2024(Standalone) Sept 30, 2023(Standalone) Sept 30, 2024(Standalone) Amounts transferred from/to the Policyholders 36,04,
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 ($, current) Japan France 2.0k Korea, Rep. Italy United States 1.5k Germany 1.0k Israel Netherlands Spain Australia .5k Thailand Chile Portugal Slovenia China Slovak Republic India Philippines
Slide 54: Household savings to increase
Household savings to increase Household Savings (% of GDP) 30.00% 25.20% 25.00% 23.60% 23.10% 23.60% 22.70% 22.40% 22.50% 20.30% 19.60% 19.30% 20.30% 20.21% Household 20.00% 19.10% 18.00% 18.10% 18.22% saving as percentage 15.00% of GDP is 18.22% in fiscal year 10.00% 2023 5.00% 0.00% FY08 FY09 FY10
Slide 55: Share of life insurance in incremental household financial saving
Share of life insurance in incremental household financial saving 120.00% 100.00% 9.75% 10.29% 13.22% 10.41% 12.25% 9.46% 6.72% 6.70% 2.09% 6.02% 2.65% 6.15% 80.00% 12.45% 7.99% 12.28% 12.16% 10.32% 23.57% 16.18% 21.07% 60.00% 17.86% 19.48% 21.13% 17.96% 18.26% 16.88% 14.25% 18.18% 40.00% 18.22% 16.
Slide 56: Preference for Financial savings - Faster growth for Life Insurance
Preference for Financial savings - Faster growth for Life Insurance 10-Year(FY 2014 to FY 2023) ~ 2,72,40,712 Cr Nominal GDP ~10.3% CAGR ~ 49,63,212 Cr Household (HH) ~9.0% CAGR (18.2% GDP) Savings ~ 29,73,636 Cr Gross Savings in ~10.7% CAGR (59.91% HH savings) Financial Assets ~ 5,40,561 Cr Annual
Slide 57: Protection gap for different countries
Protection gap for different countries 90% 83% 80% 76% 74% 71% 70% 70% 61% 60% 55% 55% 54% 50% India’s protection gap was 83% as of 41% 40% 2019, the highest among all countries 30% in Asia- Pacific¹ 20% 10% 0% India Indonesia Malaysia Thialand China Japan South Singapore Australia Hong Kong Korea P
Slide 58: Well positioned to ride the growth in a highly underinsured market
Life Insurance Penetration %age FY 2022 Insurance Density (in US$)1 FY 2022 18 9000 16.7 8007 16 8000 14 7000 6074 12 6000 10 5000 9.1 8.2 8.1 8 7.4 4000 3669 5.9 5.5 3000 2730 2656 6 5.4 2239 2017 1942 3.7 3.4 2000 1705 4 3 1182 2 1000 614 609 432 255 235 184 70 0 0 WELL POSITIONED TO RIDE THE GROW
Slide 59: 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 2,22,523 41.13% 2.043 30.09% Crore Crore 58.87% 69.91% Private Sector Public Sector (LIC) Private Sector Public Sector (LIC) Individual NB Premium
Slide 60: Embedding ESG in our business - building a sustainable future
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 39.23% agents in India reside in rural areas “Bima Gram” ini
Slide 61: Embedding ESG in our business - building a sustainable future
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
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) 7,420 8,260 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 H1FY25 FY 2019 FY 2020 FY 2021 F
Slide 64: Awards & Accolades
Awards & Accolades 63 Source: Corporation data as on 30.09.2024
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 Investor Relations Contact: Life Insurance Corporation of India Yogakshema, Third Floor, West Wing, Jeevan Bima Marg, Nariman Point, Mumbai- 400021. Contact # +91 66599401 Email - investorrelations@licindia.com Website – www.licindia.in
Life Insurance Corporation of India — H1 FY2025 Earnings Presentation on 6ix