&w=3840&q=100)
LIC eyes higher non-par product mix to boost margins post Q4 surge
State-owned Life Insurance Corporation (LIC) will continue to focus on increasing the share of non-participating products in its product mix to grow its margin further.
Shares of the state-owned insurer gained over 8 per cent on Wednesday on the BSE after the insurer reported a good set of numbers for the fourth quarter of the financial year 2024-25 (Q4FY25). The shares closed 8.21 per cent at ₹942.55.
Brokerage houses also maintained a bullish stance, owing to the insurer's plans to improve their margins.
According to analysts at Motilal Oswal, LIC continues to maintain its industry-leading position and is focused on achieving growth recovery through wider product offerings, higher ticket size, a shift in the product mix toward non-par. Expansion of the agency channel, and a higher contribution from bancassurance and alternate channels will also aid recovery. Further, improvement in rider attachment, along with an increase in contribution from higher margin products, will boost VNB margin for the insurer. The analysts have reiterated a 'buy' stance on the stock.
The total number of agents of LIC stood at nearly 1.49 million. The insurer logged net addition of over 72,000 agents during FY25, leading to market share of 47.6 per cent based on the number of agents.
Analysts at Emkay Global Financial Services also noted the management's plans to expand the share of non-par, and value of new business (VNB) margin, which could be offset by the company's annualised premium equivalent (APE) growth. 'To bake in the Q4 developments, we tweak our FY26-27 estimates which leads to about 1- 2 per cent cut in APE and around 10bps increase in VNB margin, resulting in around 1-2 per cent cut in VNB,' analysts said.
During the quarter, the profitability margin, VNB margin, improved to 18.7 per cent in Q4FY25 from 17.21 per cent in Q4 FY24. The net profit of the life insurer rose 38 per cent to ₹19,013 crore. The net premium income slipped 3 per cent to ₹1.48 trillion. The APE was down 10.98 per cent Y-o-Y to ₹18,953 crore, which was partially attributed to the change in product regulations introduced on October 1, 2024. The company's gross non-performing assets (NPAs) improved, dropping 55 basis points to 1.46 percent during the quarter.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
33 minutes ago
- Business Standard
CE Info Systems slips 9% after 3.1 mn shares change hands on BSE
CE Info Systems (MapmyIndia) share price cracked 8.5 per cent in trade on Thursday, June 12, 2025, logging an intraday low at ₹1,785 per share on BSE amid heavy volumes. On BSE, 3.1 million shares changed hands and on National Stock Exchange (NSE) 1.1 million shares were traded at 9:37 AM. Around the same time, CE Info Systems shares were trading 6.9 per cent lower at ₹1,817.5 per share on the BSE. In comparison, the BSE Sensex was up 0.10 per cent at 82,597.82. The company's market capitalisation stood at ₹9,888.13 crore. Its 52-week high was at ₹2,745.05 per share and 52-week low was at ₹1,514.7 per share. CE Info Systems block deal reports According to reports, PhonePe Pvt Ltd was likely to offload a 5 per cent equity stake worth ₹476 crore in CE Info Systems, with a floor price set at ₹1,750 per share. As of March 2025, PhonePe held an 18.74 per cent stake in the company. CE Info Systems Q4 results 2025 In the quarter that ended March 31, 2025, the company registered a 28 per cent rise in profit after (PAt) to ₹49 crore as compared to ₹38.2 crore a year ago. The revenue from operations stood at ₹143.5 crore as compared to ₹106.9 crore a year ago, up 34 per cent. The Earnings before interest, tax, depreciation, and amortisation stood at ₹58 crore as against 39.5 crore a year ago. Ebitda margin stood at 40 per cent as compared to 38 per cent a year ago. The company's open order book has grown 10 per cent to ₹1,500 crore based on ₹633.5 crore of annual new order bookings in FY25, with momentum across both Automotive and Mobility Tech (A&M) and Consumer Tech & Enterprise Digital Transformation (C&E) market segments, due to continued adoption & expansion of use cases by new and existing customers. Additionally, new orders won with fixed pricing have grown significantly in FY25 to ₹417.9 crore as against ₹240 crore in previous year. The current open order book to revenue conversion ratio is estimated to be 3-4 years. About CE Info Systems CE Info Systems is a deep-tech digital map data, geospatial software, and location-based IoT products, platforms, solutions, and APIs company, offering proprietary digital maps as a service (MaaS), software as a service (SaaS), and platform as a service (PaaS).
Economic Times
42 minutes ago
- Economic Times
Tanla Platforms shares soar 13% as board likely to consider share buyback
Tanla Platforms share buyback history Live Events Tanla Platform share price performance (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Shares of Tanla Platforms soared 12.8% to hit their day's high of Rs 702 on BSE in Thursday's trade after the company announced that its board of directors will meet on June 16 to consider a proposal for the buyback of equity shares.'Pursuant to Regulation 29(1)(b) of the SEBI LODR, this is to inform that a meeting of board of directors of the Tanla Platforms Limited ('Company') will be held on Monday, June 16, 2025, inter alia, to consider the proposal for buyback of equity shares of the Company and other matters necessary and incidental thereto,' the company informed via a filing to the stock potential buyback plan has boosted investor sentiment, with market participants viewing it as a sign of the company's financial strength and commitment to enhancing shareholder value.A share buyback typically involves a company repurchasing its shares from the market, thereby reducing the number of outstanding shares and potentially increasing earnings per share (EPS). It serves as a signal of management's confidence in the company's future performance and cash to the data available on Trendlyne, Tanla Platforms had conducted two board meetings before this, to conduct a buyback of shares, in July 2021 and April the past one year, the stock has declined 27.71%, while the year-to-date (YTD) performance shows a loss of 7.57%. In the last six months, the stock is down by 1.11%.However, in the most recent three month period, the stock has gained 58.71%, and over the past one month, it has risen 40.20%.
Time of India
44 minutes ago
- Time of India
Tanla Platforms shares soar 13% as board likely to consider share buyback
Tanla Platforms' shares surged 12.8% following the announcement of a board meeting on June 16, 2025, to consider a potential equity share buyback. This move has boosted investor confidence, signaling the company's strong financial position. While the stock has seen declines over the past year, it has recently experienced significant gains in the last three months. Tired of too many ads? Remove Ads Tanla Platforms share buyback history Tired of too many ads? Remove Ads Tanla Platform share price performance Shares of Tanla Platforms soared 12.8% to hit their day's high of Rs 702 on BSE in Thursday's trade after the company announced that its board of directors will meet on June 16 to consider a proposal for the buyback of equity shares.'Pursuant to Regulation 29(1)(b) of the SEBI LODR, this is to inform that a meeting of board of directors of the Tanla Platforms Limited ('Company') will be held on Monday, June 16, 2025, inter alia, to consider the proposal for buyback of equity shares of the Company and other matters necessary and incidental thereto,' the company informed via a filing to the stock potential buyback plan has boosted investor sentiment, with market participants viewing it as a sign of the company's financial strength and commitment to enhancing shareholder value.A share buyback typically involves a company repurchasing its shares from the market, thereby reducing the number of outstanding shares and potentially increasing earnings per share (EPS). It serves as a signal of management's confidence in the company's future performance and cash to the data available on Trendlyne, Tanla Platforms had conducted two board meetings before this, to conduct a buyback of shares, in July 2021 and April the past one year, the stock has declined 27.71%, while the year-to-date (YTD) performance shows a loss of 7.57%. In the last six months, the stock is down by 1.11%.However, in the most recent three month period, the stock has gained 58.71%, and over the past one month, it has risen 40.20%.
