Compliance and Financial Overview
• LIC submitted a transcript of its earnings call to BSE and NSE on June 3, 2024.
• Total premium income for FY ending March 31, 2024: INR 4,75,070 crore (slight increase from previous year).
• Individual new business premium income: INR 57,716 crore (decrease).
• Renewal premium income: INR 2,46,052 crore (increase).
• Group business total premium income: INR 1,71,302 crore (5.48% decline).
• Maintained leadership in individual and group insurance segments.
Key Financial Metrics
• Total Annualized Premium Equivalent (APE): INR 56,970 crore.
• Individual APE: INR 38,433 crore (67.46%).
• Group APE: INR 18,537 crore (32.54%).
• Profit After Tax (PAT): INR 40,676 crore (up from INR 36,397 crore).
• Value of New Business (VNB): INR 9,583 crore (4.66% increase).
• Solvency ratio improved to 1.98.
• Indian Embedded Value (IEV): INR 7,27,344 crore (24.92% growth).
• Assets Under Management (AUM): INR 51,21,887 crore (16.48% increase).
Business Developments
• Launched six new Non Par products.
• Agency workforce grew by approximately 67,500 agents.
• Banca channel reported a 2.90% increase in new business premium.
• Processed over 21 million claims; maturity claims rose, death claims slightly decreased.
• Recommended final dividend of Rs. 6 per share (in addition to interim dividend of Rs. 4).
Strategic Discussions
• Pending shareholder approval for share dividend.
• Significant charge of Rs. 14,000 crores due to wage revisions and pension liabilities.
• Ongoing discussions about commission structures and regulatory developments in health insurance.
• Focus on balancing growth with maintaining VNB margins.
Growth Strategy and Market Position
• Emphasis on Bancassurance growth, particularly partnerships with banks.
• Addressed demographic contributions to premium collections and competition in Tier-2 and Tier-3 towns.
• Agency Transformation Project "Jeevan Samarth" initiated to strengthen presence in rural areas.
• Recruitment of 6,000 Probationary Development Officers for Tier-2 and Tier-3 branches.
Future Outlook
• Plans to enhance agency channel and agent capabilities through technology (ANANDA app).
• Target to increase Bancassurance channel share from 3.61% to 5-6%.
• Introduction of new and unique products in the protection segment.
• Continued growth in agent recruitment, particularly in Tier-2 and Tier-3 markets.

Financial Performance Highlights
• Total Premium Income: INR 3,22,776 crore (down 5.69% YoY)
• Individual New Business Premium: Stable at INR 38,679 crore
• Group Business Premiums: Declined by 20.28%
• Market Share: 58.90% in first-year premium income
Profit and Growth Metrics
• Profit After Tax (PAT): INR 26,913 crore (up from INR 22,970 crore YoY)
• Value of New Business (VNB): Increased by 8.4% to INR 5,938 crore
• VNB Margin: Expanded by 200 basis points to 16.6%
• Solvency Ratio: Improved to 1.93
• Assets Under Management: Grew by nearly 12% to INR 49,66,371 crore
Product and Channel Developments
• New Non-Par Products: Launched to enhance product mix
• Policies Sold: Slight decline (1.25 crore vs. 1.28 crore)
• Agency Workforce: Increased to 13.74 lakh (market share of 49.67%)
• Other Channels: 5.02% growth in new business premium
Digital Initiatives and Claims Processing
• Digital Policy Processing: Significant increase via ANANDA app
• Claims Processed: 1,38,02,767 (maturity claims up, death claims down)
Strategic Focus and Future Outlook
• Product Mix Strategy: Emphasis on non-participating products
• Target for Non-Par Products: Aiming for 15% of Annualized Premium Equivalent (APE)
• Growth Outlook: Continued focus on APE and margin improvement
Challenges and Market Dynamics
• Decline in Protection Product Sales: Addressing through new variants
• Par Margins: Slight decline due to business mix and risk-free rate fluctuations
• Group Business: Decline attributed to delays in securing large contracts
Risk Management and Hedging
• Non-Par Product Duration: No strict limitations on maintaining a 15% mix
• Hedging Mechanisms: Minimal need currently; derivative policy approved for future risks
Conclusion
• Commitment to Stakeholders: Reaffirmed by management during the call, with a focus on balancing growth, margins, and customer needs.

Key Financial Highlights
• Total Premium Income: INR 2,05,760 crore (10.72% decline YoY)
• Individual Business Growth: 5.52% increase
• Group Business Decline: 30.90% decrease
• Market Share: 58.50% in first-year premium income
• Annualized Premium Equivalent (APE): INR 22,627 crore (64.69% from individual APE)
• Profit After Tax (PAT): INR 17,469 crore
• Indian Embedded Value (IEV): Increased by 21.74% to INR 6,62,605 crore
• Net Value of New Business (VNB): INR 3,304 crore (14.6% margin)
• Solvency Ratio: Improved to 1.90
• Assets Under Management (AUM): Grew by 10.47% to INR 47,43,389 crore
Business Performance
• New Policies Sold: 80.61 lakh (decrease from 83.59 lakh YoY)
• Agency Workforce: Increased to 13.46 lakhs (49% market share)
• Expense Ratio: Improved to 15.14%
• Claims Processed: 86,40,598 (maturity claims up by 8.22%, death claims down by 7.19%)
Management Insights
• Employee Expenses: Volatility due to pension provisions; solvency ratio remains strong.
• Share Price Concerns: Management urged to innovate for shareholder rewards.
• Persistency Rates: Mixed results; improvements noted in specific cohorts.
• VNB Margins: Improved to 14.6% due to non-participating business shift.
Challenges and Strategies
• Group Premium Decline: Attributed to cyclical factors; recovery efforts underway.
• Competition Impact: Not the primary reason for group business decline.
• Product Mix Impact: Enhancements in annuity products affecting VNB margins.
• Agent Productivity: Increased training for agents in non-par products.
Future Outlook
• Product Repricing Strategy: Aimed at improving margins in the protection segment.
• Optimism for Second Half: Confidence in recouping group business through strategic engagement.
• Focus on Non-Par Products: Expected to lead to improved margins in the future.
Conclusion
• Commitment to Results: Management reassured stakeholders of ongoing efforts to navigate challenges and deliver strong performance.

Key Financial Highlights
• Total Premium Income: INR 98,363 crore (slight increase from INR 98,352 crore YoY)
• Individual New Business Premium: Decreased to INR 10,462 crore from INR 10,938 crore
• Renewal Premium Income: Increased to INR 52,311 crore from INR 49,069 crore
• Market Share: Maintained at 61.42% in first-year premium income
• Profit After Tax: INR 9,543.71 crore (up from INR 682.88 crore YoY)
• Assets Under Management (AUM): Grew by 12.41% YoY to INR 46,11,066.52 crore
Product and Policy Updates
• New Products: Launched two non-participating products and modified an existing health plan
• New Policies Sold: Decreased to 32.16 lakh from 36.82 lakh
• Agency Workforce: Slight increase to 13,43,540 agents
Channel Performance
• Banca and Alternate Channels: Contributed 1.96% of policies and 3.22% of New Business premium, with YoY growth of 15.80% in NB premium
• Expense Ratio: Improved to 12.85% from 14.59% YoY
• Persistency Rates: Showed improvement across various cohorts
Management Insights
• Group Business Focus: Good margins despite deferred receivables; confidence in market share retention
• Term Insurance Business: Addressed decline with competitive products and direct marketing focus
• Segmental Surplus Generation: Clarified perceived deficit in par segment due to strategic provisions
Digital and Operational Enhancements
• Digital Initiatives: Significant increase in policy completions via Agent-assisted ANANDA app (436.21% YoY growth)
• Manpower Allocation: Focus on better allocation rather than increasing expenses; investments in digital technology
Market Trends and Future Outlook
• Women Purchasing Policies: 35-36% growth in this segment; focus on under-penetrated markets
• Pricing Strategy: Monitoring term insurance pricing dynamically with strong reinsurance support
• Valuation Concerns: Low Embedded Value multiples compared to private sector; focus on enhancing profitability metrics
Dividend and Shareholder Value
• Dividend Policy: Recent 100% increase; future dividends dependent on capital utilization
• Stakeholder Commitment: Reaffirmed by Chairperson Siddhartha Mohanty at the conclusion of the call

Financial Performance Highlights
• Total Premium Income: INR 4,74,005 crore (10.90% increase YoY)
• Profit After Tax: INR 36,397.40 crore (up from INR 4,043.12 crore in FY22)
• Gross Value of New Business: INR 11,553 crore (16.46% increase)
• Net VNB Margin: Improved to 16.2%
• Indian Embedded Value: INR 5,82,243 crore (7.53% increase)
• Assets Under Management: INR 43,97,205 crore (7.65% increase)
• New Products Launched: Seven non-participating insurance products
Business Segment Performance
• Policy Sales: 2.04 crore new policies (decline from 2.17 crore)
• Individual New Business Premium: Increased by 6.91%
• Agency Workforce: Slight growth; agents sold over 96% of policies
• Management Expense Ratio: Rose to 15.53%
• Claims Processed: 2.21 crore; maturity claims down by 9.97%, death claims down by 34.43%
Management Insights
• Persistency Rates: Improved for most cohorts; reflects past performance
• Taxation: Recent review allows tax deduction on policyholder bonuses
• Embedded Value (EV): MTM integrated into in-force business; wage revisions minimally affect EV
Growth Strategies
• Annuity and Non-Par Segments: Focus on improving yields and agent training
• Bancassurance Contributions: 26% growth reported
• Digital Transformation: Ongoing initiatives to enhance operations
Market Share and Profitability
• Market Share Focus: Emphasis on profitable market share rather than volume
• Group Business Contributions: Significant impact on profitability and persistency rates
Product Adjustments and Sensitivity
• Changes in Product Structures: Adjustments made to remain competitive
• Economic Variance: Reflects overall market impact, not specific stocks
• Unwind Rate Increase: Due to higher risk-free rates and better returns
Future Outlook
• FY '24 Growth Metrics: Focus on profitable growth; confidence in non-par product growth
• Product Viability: Modifications made to enhance low persistency products
• Digital Marketing Channel: Expected growth through technological interventions
Conclusion
• Commitment to Stakeholders: Focus on enhancing value and refining strategies
• Overall Growth: Achieved 16.67% growth in FY '23; appreciation for participants at the call.

Communication Overview
• LIC communicated the transcript of a conference call to BSE and NSE.
• The call focused on LIC's earnings for the first nine months of FY23.
• Key participants included Chairperson M.R. Kumar and senior management.
• Transcript available on LIC's website.
Key Highlights from the Call
• Performance Update:
• Total premium income: INR 3,42,244 crore (20.65% increase YoY).
• Individual new business premium: INR 38,828 crore.
• Renewal premium income: INR 1,61,601 crore.
• Group business premium: INR 1,41,815 crore.
• Market share in first-year premium: 65.38%.
• Financial Results:
• Profit after tax: INR 22,970 crore (up from INR 1,672 crore YoY).
• Six new non-participating products launched.
• Agency channel contributed over 96% of policies sold.
• Operational Efficiency:
• Persistency rates showed slight improvements.
• 1.66 crore policies dispatched via "Print to Post" initiative.
• 153% increase in policies processed through Agent-assisted ANANDA app.
• Claims processed: 1.40 crore total claims.
Q&A Session Insights
• VNB Margin and Tax Impacts:
• Positive VNB margin change due to interest rates and business mix.
• Tax-related reversals mainly affected the participating segment.
• Policy Statistics:
• 5 lakh+ policies based on policy count, APE of 1.8%.
• Decline in individual non-PAR margins attributed to product mix shifts.
• Group Business Performance:
• Strong performance noted, particularly in savings schemes.
• Product Growth:
• ULIPs growing faster than non-PAR savings, but both performing well.
• New product "Dhan Varsha" expected to perform well.
Strategic Discussions
• Banca and FinTech Channels:
• Plans to hire more officers and enhance technology use.
• Focus on supporting bank staff for insurance sales.
• Health Insurance and Reinsurance:
• Interest in re-entering health insurance market.
• Minimal reinsurance outflow, exploring increased coverage options.
• Market Trends:
• Exploring partnerships with insurance repositories.
• Anticipated growth in rural and urban markets for low-ticket insurance products.
Conclusion
• M.R. Kumar expressed optimism about future growth and thanked participants for their engagement.