LIC's group premium grows 14% in May, new business premium grows 10%

Mumbai, June 10

Life Insurance Corporation of India (LIC), the country’s largest life insurer, reported a 13.79% year-on-year (YoY) increase in group premium for the month of May 2025. For the first two months of the fiscal 2026, group premium grew 13.66%, as per data released by the Life Insurance Council.

In May 2025, LIC collected ₹14,374.87 crore in group premium up from ₹12,632.26 crore in May 2024. The overall new business premium grew 10.27% from Rs 16,690.39 crore for the month of May 2024 to Rs 18,405.04 crore for the month of May 2025. The overall life insurance industry garnered ₹30,463.20 crore, marking an 12.68% rise over ₹27,034.14 crore collected in the same month last year.

In the Individual Premium category, LIC posted a slight decline of 0.69%, collecting ₹4,030.17 crore in May 2025 compared to ₹4,058.13 crore in May 2024.

During the month of May 2025, Total Policies issued by LIC stood at 10.68 lakh from 12.51 lakh in the same period last year. While individual policies was 10.67 lakh polices for the month of May 2025 from 12.48 lakh policies for the month of May 2024, Group Policies stood at 1,389 in the month of May 2025 from 2,279 for the month of May 2024.

Comparison of April-May 2025 with April-May 2024

Total Premium collected by LIC for the April-May 2025, stood at ₹32,015.68 crore from ₹29,074.03 crore for the same months last year. In the Individual Premium segment amounted to ₹7,191.04 crore, compared to ₹7,233.61 crore in the same period last year. The Group Premium segment amounted to ₹24,824.64 crore for the April-May 2025, from ₹21,840.42 crore in the previous year.

LIC issued a total policy of 17.94 lakh for the month of April-May 2025 from 21.07 lakh policies in the same period last year. Policies for the Individual Category stood at 17.91 lakh in the April-May 2025, from 21.03 lakh in the April-May 2024. Group Policies stood at 2,558 in the April-May 2025 from 3,704 policies in the April-May 2024.

LIC reported a robust 38% YoY growth in Q4FY25 consolidated net profit, reaching Rs 19,039 crore, and announced a final dividend of Rs 12 per share. While net premium income saw a slight dip, the full financial year witnessed an 18% increase in PAT to Rs 48,151 crore.

A bonus of Rs 56,190.24 crore was declared to policyholders, demonstrating the company’s continued commitment to delivering value. Value of New Business (VNB) rose by 4.47 percent year-on-year to Rs 10,011 crore, with VNB margin (net) expanding by 80 basis points to 17.6 percent.

The share of Non-Par Annualized Premium Equivalent (APE) within the individual business grew by 937 basis points year-on-year to 27.69 percent, while Non-Par APE itself surged by 50.28 percent year-on-year to Rs 10,581 crore.

EoM.