IME Life Insurance Q4 Results: Strong Revenue Growth, Higher Premium Inflows, and Steady Profitability

IME Life Insurance Company Ltd. (ILI) has published its audited financial results for the fourth quarter of FY 2024/25, reporting strong revenue growth, consistent profitability, and rising premium inflows, although claims continue to increase.

The company reported a total revenue of Rs. 6.98 billion in Q4, up 25.42% year-on-year compared to Rs. 5.93 billion in Q4 of FY 2023/24. Sequentially, revenue increased from Rs. 4.72 billion in Q3, continuing a stable upward trend across the fiscal year.

The gross profit stood at Rs. 1.35 billion, with a gross margin of 19.33%, slightly lower than last year’s 22.75% but an improvement from Q3’s 17.88%. This reflects better operating efficiency and cost management.

Net income reached Rs. 583.30 million in Q4, compared to Rs. 514.56 million in Q4 last year and Rs. 366.33 million in Q3. The net profit margin stood at 8.35%, broadly consistent with industry standards and higher than 7.76% in Q3.

Return indicators remained stable. Return on Assets (ROA) was 2.98%, slightly lower than 3.20% a year ago. Return on Equity (ROE) stood at 8.10%, showing steady improvement from 7.32% in Q4 of last year.

On a per-share basis, EPS (annualized) improved to Rs. 11.67, compared to Rs. 10.29 a year earlier. The reported PE ratio stood at 39.60, reflecting a moderate valuation given earnings growth.

From a balance sheet perspective, the book value per share was Rs. 138.58, while the market value per share traded at Rs. 462.02, over 3x book value, signaling continued investor confidence.

Insurance Business Indicators

• Total enforced policies dropped to 474,255 (-10.50% YoY), indicating weaker policy retention compared to 529,883 a year ago.

• First-year premium income grew strongly to Rs. 1.97 billion (+22.95% YoY), showing robust new business growth.

• Single premium income rose to Rs. 132.63 million (+64.10% YoY), reflecting strong demand for lump-sum policies.

• Renewal premiums increased to Rs. 3.68 billion (+17.32% YoY), supporting long-term recurring revenue stability.

• Claims paid increased by 30.69% YoY, reaching 2,555 cases, suggesting rising policyholder benefits and payouts.

• Outstanding claims decreased sharply to 14 (-64.10% YoY), reflecting faster claim settlement efficiency.

• Long-term investments stood at Rs. 13.76 billion, slightly down from Rs. 14.07 billion last year, while short-term investments surged to Rs. 3.79 billion, showing liquidity optimization.

Dividend for FY 2024/25 has not been announced yet. Last year, ILI distributed Rs. 21.05 per share.