LIC Q1 Results: Net profit rises 23% YoY to ₹13,492 crore; VNB jumps 61%

Life Insurance Corporation of India (LIC) on Thursday reported a net profit of ₹13,492 crore for the June quarter, marking a 22.8% year-on-year (YoY) increase from ₹10,986 crore in the corresponding quarter last year.

The insurer's total premium income rose 6.8% YoY to ₹1,27,250 crore, compared with ₹1,19,194 crore in the year-ago period.

Within the premium mix, first-year premium increased 22.5% YoY to ₹9,217 crore, renewal premium grew 3.3% to ₹61,833 crore, while single premium rose 8.7% to ₹56,369 crore.

Value of New Business (VNB) increased 61.3% YoY to ₹3,136 crore from ₹1,944 crore a year ago, while the net VNB margin expanded by 750 basis points to 22.9% from 15.4% in Q1FY26.

During the quarter, LIC sold 31,02,281 policies in the individual segment, up 2.06% year-on-year from 30,39,709 policies in the corresponding quarter last year.

Individual new business premium increased 14.5% YoY to ₹14,351 crore from ₹12,537 crore in the corresponding quarter last year. Meanwhile, the Annual Premium Equivalent (APE) grew 8.2% YoY to ₹13,692 crore.

Within the individual business, non-par APE rose 14.2% YoY to ₹2,447 crore, while its share increased to 32.5% from 30.3% a year ago. Group business APE also registered a 10.2% YoY increase to ₹6,160 crore.

LIC's solvency ratio improved to 2.42 from 2.17 in the year-ago period, reflecting a stronger capital position.

Meanwhile, the insurer's assets under management (AUM) increased 4.1% YoY to ₹59.39 lakh crore. The overall expense ratio edged up to 10.63% from 10.47% in the corresponding quarter last year.

Market share remains strong

According to IRDAI data, LIC continued to dominate the Indian life insurance market with an overall First Year Premium Income (FYPI) market share of 60.10%. During the quarter ended June 30, 2026, the insurer held a 38.89% market share in the individual business and a 70.90% share in the group business.

Shri R Doraiswamy, CEO & MD, LIC, said, "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."

"Our overall market share by first-year premium income was 60.10% for the first quarter of FY 2026-27, and this fits in well with our market share strategy. What gives us even more happiness is that our VNB has grown by 61% plus, and our VNB margin has expanded by 7.5% to 22.90% this year," Doraiswamy further said.

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