New Delhi: Life Insurance Corporation of India (LIC) has reported a strong financial performance for the first quarter of FY2026-27, driven by higher profitability, significant growth in the Value of New Business (VNB) and improved margins.
The insurer’s Board of Directors approved the unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, at its meeting held on August 6, 2026.
LIC Reports 23% Growth in Net Profit
LIC’s Profit After Tax (PAT) rose by 22.81% year-on-year to ₹13,492 crore during the April-June quarter of FY27, compared to ₹10,986 crore in the corresponding quarter last year.
The strong earnings reflect healthy premium growth, improved business quality and continued focus on profitability.
Key Financial Highlights
- Profit After Tax (PAT): ₹13,492 crore (+22.81% YoY)
- Total Premium Income: ₹1,27,250 crore (+6.75% YoY)
- Individual New Business Premium: ₹14,351 crore (+14.48% YoY)
- Annual Premium Equivalent (APE): ₹13,692 crore (+8.22% YoY)
- Assets Under Management (AUM): ₹59.39 lakh crore (+4.10% YoY)
- Solvency Ratio: Improved to 2.42 from 2.17 a year ago
Read also: LIC OFS Draws ₹36,400 Crore Institutional Bids; Centre Expands Stake Sale to 6.54%
Value of New Business Soars 61%
One of the biggest highlights of the quarter was the sharp rise in Value of New Business (VNB).
LIC reported:
- VNB: ₹3,136 crore
- Growth: 61.32% YoY
- Net VNB Margin: 22.9%, up from 15.4% last year
- Margin Expansion: 750 basis points
The improvement reflects the company’s continued shift towards a more profitable product portfolio.
Business Mix Improves with Higher Non-Par Contribution
LIC continued to diversify its product mix during the quarter.
Within the individual business:
- Participating products contributed 67.51% of APE (₹5,085 crore).
- Non-participating (Non-Par) products accounted for 32.49% of APE (₹2,447 crore).
Non-Par APE increased 14% year-on-year, while its share in the individual business rose from 30.34% to 32.49%, indicating a stronger focus on higher-margin products.
Meanwhile:
- Group Business APE grew 10.20% to ₹6,160 crore.
- LIC sold 31.02 lakh individual policies, registering 2.06% growth over the previous year.
Market Leadership Remains Strong
Despite increasing competition in the life insurance industry, LIC retained its dominant position in the market.
The company reported an overall market share of 60.10% based on First Year Premium Income, maintaining leadership in both the individual and group insurance segments.
Assets and Solvency Position Strengthen
LIC’s financial strength continued to improve during the quarter.
Key indicators include:
- Assets Under Management (AUM): Increased to ₹59.39 lakh crore from ₹57.05 lakh crore last year.
- Solvency Ratio: Improved to 2.42, indicating stronger capital adequacy.
The company’s overall expense ratio stood at 10.63%, slightly higher than 10.47% in the corresponding quarter last year.
The investment yield in the policyholders’ fund (excluding unrealised gains) stood at 8.28%, compared to 8.45% a year earlier.
Persistency Ratios Show Mixed Performance
LIC’s policy persistency remained broadly stable, although some indicators witnessed a decline.
Premium Basis
- 13th Month Persistency: 75.33% (vs 75.63%)
- 61st Month Persistency: 61.12% (vs 63.85%)
Policy Count Basis
- 13th Month Persistency: Improved to 66.45% (from 64.35%)
- 61st Month Persistency: Declined to 48.74% (from 51.12%)
CEO Highlights Product Diversification Strategy
LIC CEO and Managing Director R. Doraiswamy said the company’s strong VNB growth and significant margin expansion reflect the success of its product diversification and distribution strategy.
He also noted that LIC continues to maintain its leadership position despite rising competition, with a 60.10% market share in First Year Premium Income during the quarter.
The CEO further highlighted that LIC recently completed the Offer for Sale (OFS) of a 6.5% government stake and is preparing to celebrate its 70th anniversary on September 1, 2026.
About LIC
The Life Insurance Corporation of India (LIC) is a statutory corporation established under the LIC Act of 1956. It is India’s largest insurance company and the largest institutional investor. LIC’s primary goal is to provide life insurance and financial security to individuals, with a focus on spreading insurance widely, especially in rural areas.
