LIC records 22.8 per cent jump in Q1 net profit at Rs 13,492 crore
New Delhi, Aug 6
The Life Insurance Corporation of India posted a robust 22.8 per cent increase in net profit at Rs 13,492 crore for the first quarter of the current financial year, compared with Rs 10,987 crore in the same period last year.
The strong performance came on the back of healthy premium growth, a sharp improvement in new business profitability, and higher investment income.
The net premium income of the country's largest life insurer increased 7 per cent year-on-year to Rs 1.27 lakh crore, while other income jumped to Rs 635 crore from Rs 130 crore a year ago. A key highlight of the quarter was the significant improvement in the insurer's Value of New Business (VNB), which jumped 61 per cent to Rs 3,136 crore compared to the same quarter of 2025-26.
The VNB margin expanded 750 basis points to 22.9 per cent from 15.4 per cent in the year-ago period, reflecting improved product mix and stronger profitability from new business written during the quarter.
The LIC also reported robust growth in first-year premium income, which recorded a 22 per cent year-on-year growth to Rs 9,217 crore, reflecting the healthy traction in new policy sales.
The total income of the insurer during the reporting quarter improved to Rs 2,37,848 crore from Rs 2,22,864 crore in the same period of the preceding fiscal year, the LIC said in an exchange filing.
The insurer further strengthened its balance sheet during the quarter, with the solvency ratio improving to 2.42 from 2.17 a year earlier, remaining comfortably above the regulatory requirement.
The LIC's total expenses rose to Rs 2,25,573 crore during the first quarter compared to Rs 2,11,928 crore in the same quarter of the previous financial year.
Its assets under management touched the Rs 59,39,384 crore mark, up 4.1 per cent year-on-year.
The financial results were announced after market hours. LIC shares closed 1.39 per cent lower at Rs 387.55 per share on Thursday.
— IANS
Reader Comments
Finally LIC is showing some private sector-like efficiency! The VNB margin jump from 15.4% to 22.9% is a big deal. But I still feel they need to improve customer service. My mother had to visit the branch 3 times just for a simple name correction. Profit is good, but policyholder experience matters too.
Solid numbers from India's largest insurer. The solvency ratio improvement to 2.42 is particularly reassuring. This shows LIC is maintaining a strong buffer while growing. The AUM crossing ₹59 lakh crore is mind-boggling - that's larger than many countries' entire GDP!
Good to see LIC's numbers, but can we talk about the share price? Still hovering around ₹387, very close to the IPO price. Investors who put their money in LIC IPO are still waiting for returns. The company needs to work on shareholder value creation, not just policyholder returns. 🤔
The 61% jump in VNB is truly outstanding. This indicates LIC is selling more profitable products now. But I wonder how much of this is from traditional plans versus newer products. The market will watch if this momentum sustains through the year. Impressive quarterly performance overall!
LIC is doing well but as a young customer, I rarely consider them. HDFC Life or ICICI Prudential offer better digital experiences. LIC needs to modernize their app and online services if they want to attract the younger generation. Traditional insurer yes, but they need to evolve with times.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.