Life Insurance Corporation of India (LIC) reported a 22.81 per cent year-on-year increase in profit after tax (PAT) to `13,492 crore for the quarter ended June 30, 2026, compared with `10,986 crore in the corresponding quarter of the previous year.
The company’s Value of New Business (VNB) recorded a sharper growth of 61.32 per cent, rising to `3,136 crore from `1,944 crore a year earlier. The net VNB margin also expanded by 750 basis points to 22.9 per cent from 15.4 per cent in Q1 FY26.
The LIC Board of Directors approved and adopted the standalone and consolidated financial results for the quarter ended June 30, 2026.
LIC said it continued to maintain its leadership in the Indian life insurance market, with an overall market share of 60.10 per cent based on First Year Premium Income (FYPI), according to IRDAI data. Its market share stood at 38.89 per cent in the individual business and 70.90 per cent in the group business during the quarter.
Total premium income increased 6.75 per cent to `1,27,250 crore in Q1 FY27 from `1,19,200 crore in the same period of the previous year.
Individual business premium income rose 5.52 per cent to `75,416 crore from `71,474 crore, while total group business premium income increased 8.61 per cent to `51,834 crore from `47,726 crore.
LIC sold 31,02,281 policies in the individual segment during the quarter, compared with 30,39,709 policies in Q1 FY26, registering a growth of 2.06 per cent.
On an Annualized Premium Equivalent (APE) basis, total premium stood at ₹13,692 crore, an increase of 8.22 per cent over ₹12,652 crore in the corresponding quarter last year.
Individual business accounted for 55.01 per cent of total APE at ₹7,532 crore, while group business contributed 44.99 per cent at ₹6,160 crore. Individual business APE increased 6.67 per cent from ₹7,061 crore, while group business APE rose 10.20 per cent from ₹5,590 crore.
Within the individual business, the share of participating products stood at 67.51 per cent, or ₹5,085 crore, while non-participating products accounted for 32.49 per cent, or ₹2,447 crore.
Non-par APE increased 14.24 per cent from ₹2,142 crore in Q1 FY26 to ₹2,447 crore in Q1 FY27. Consequently, the share of non-par products within individual business increased to 32.49 per cent from 30.34 per cent a year earlier.
LIC’s solvency ratio improved to 2.42 as on June 30, 2026, from 2.17 as on June 30, 2025.
The company’s Assets Under Management (AUM) increased 4.10 per cent year-on-year to ₹59,39,384 crore as on June 30, 2026, compared with ₹57,05,341 crore a year earlier.
However, the overall expense ratio increased marginally to 10.63 per cent from 10.47 per cent, an increase of 16 basis points.
The yield on investments on policyholders’ funds, excluding unrealised gains, stood at 8.28 per cent during the quarter, compared with 8.45 per cent in the corresponding period of the previous year.
LIC’s persistency ratios showed a mixed trend. On a premium basis, the 13th-month and 61st-month persistency ratios stood at 75.33 per cent and 61.12 per cent, respectively, compared with 75.63 per cent and 63.85 per cent a year earlier.
On a number-of-policies basis, the 13th-month persistency ratio improved to 66.45 per cent from 64.35 per cent, while the 61st-month ratio declined to 48.74 per cent from 51.12 per cent.
LIC CEO and Managing Director R Doraiswamy said the corporation had maintained its leadership in both individual and group business despite increasing competition in the life insurance industry.
“We are happy to maintain our leadership in both Individual and Group Business during the first quarter of this financial year, despite increasing competitive intensity in the life insurance industry,” Doraiswamy said.
He said LIC’s overall market share based on First Year Premium Income stood at 60.10 per cent during the first quarter of FY2026-27, adding that the growth in VNB and expansion in VNB margin reflected the company’s product diversification and distribution strategy.
He welcomed the new shareholders and thanked existing shareholders who participated in the OFS for their continued confidence in LIC.
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