New Delhi: India’s largest life insurer, Life Insurance Corporation of India (LIC), announced its standalone and consolidated financial results for the quarter ended June 30, 2025 (Q1 FY26), posting a 5.02% increase in net profit year-on-year. LIC’s Profit after Tax (PAT) stood at ₹10,986 crore, up from ₹10,461 crore in the corresponding quarter last year.
LIC Retains Dominant Market Share
As per the latest figures reported to the Insurance Regulatory and Development Authority of India (IRDAI), LIC continues to maintain its dominance in the Indian life insurance industry. It reported a 63.51% overall market share in First Year Premium Income (FYPI).
- Individual business market share: 38.76%
- Group business market share: 76.54%
This stronghold reinforces LIC’s leadership despite increasing competition in the sector.
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Premium Income Grows; Individual Segment Sees Stronger Momentum
The total premium income for the quarter was ₹1,19,200 crore, up from ₹1,13,770 crore in Q1 FY25, showing a growth of 4.77%.
Breakdown:
- Individual business premium: ₹71,474 crore (up 6.37% from ₹67,192 crore)
- Group business premium: ₹47,726 crore (up 2.46% from ₹46,578 crore)
New Business Value Sees Impressive 20.75% Growth
On the back of improved business margins, LIC reported that the Value of New Business (VNB) rose to ₹1,944 crore, up 20.75% from ₹1,610 crore in Q1 FY25. This improvement signals stronger profitability from fresh policy sales.
On an Annualized Premium Equivalent (APE) basis, total premium stood at ₹12,652 crore, of which:
- Individual Business: ₹7,061 crore (55.81%)
- Group Business: ₹5,590 crore (44.18%)
- Policy Sales Decline in Volume Despite Revenue Growth
In terms of volume, the number of individual policies sold during the quarter declined by 14.75%, dropping to 30,39,709 policies from 35,65,519 in Q1 FY25.
While premium collections have grown, this decline may reflect a shift toward higher-value policies or changes in distribution strategy.
Strong Financials Amidst Competitive Landscape
Despite the dip in policy volumes, LIC’s performance reflects its ability to generate stronger returns from its existing business model, optimize margins, and retain customer trust in a crowded insurance market.
The positive growth in PAT and VNB, along with stable market leadership, sets a strong tone for FY26 as LIC continues navigating evolving customer demands, regulatory developments, and digital transitions.
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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.
