Life Insurance Corporation of India (LIC) reported a standalone net profit of Rs 10,987 crore for Q1 FY26. This marks a rise of 5 percent on-year from the Rs 10,461 crore net profit reported in Q1 FY25.
The firm’s net premium income also rose 5 percent year-on-year to Rs 1.19 lakh crore during the April-June quarter of financial year 2026. The insurer had earlier reported net premium income at Rs 1.14 lakh crore during the corresponding quarter of the previous financial year.
LIC's solvency ratio rose to 2.17 percent in Q1 FY26, from 1.99 percent in Q1 FY25. Asset quality meanwhile improved, with gross non performing assets (NPA) and net NPA reducing 21 percent and 36 percent on-year to Rs 8,436.5 crore and Rs 4 crore respectively. Gross NPA ratio stood at 1.42 percent during the quarter under review, as against 1.95 percent in the same period last year.
Also read: Our LIVE blog on Q1 results
LIC's new policy sales were subdued due to new regulations implemented earlier in October, which reduced the charges policyholders paid if they closed their policies before maturity. However, renewals bolstered its earnings.
Non-par APE (annualised premium equivalent) share within the individual business stood at 30.34 per cent for the quarter, compared to 23.94 per cent in the same quarter last year.
Solvency ratio, the measure of an insurer's ability to meet its long-term financial obligations, rose to 2.17 during the quarter from 1.99 a year earlier and 2.11 in the prior quarter.
Individual business non-par APE increased by 32.63 per cent to Rs 2,142 crore.
Group business APE increased by 16.14 per cent to Rs 5,590 crore, while the overall APE increased by 9.45 per cent to Rs 12,652 crore.
Value of new business (VNB) rose 20.75 per cent to Rs 1,944 crore, while net VNB margin increased by 150 bps to 15.4 per cent.
“VNB margin has increased by 150 bps to 15.4 per cent on a year-on-year basis, while our expense ratio has declined by 140 bps to 10.47 per cent in this quarter," said R Doraiswamy, CEO and MD, LIC.
LIC's assets under management (AUM) saw a healthy increase of 6.47 per cent YoY to Rs 57.05 lakh crore.
"For the quarter ended June 30th, 2025, LIC had a market share of 38.76 per cent in individual business and 76.54 per cent in the group business," said the company, in a regulatory filing.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
