Did LIC Achieve a 4% Increase in Q1 Consolidated Profit?
Click to start listening
Synopsis
In a significant financial update, LIC reported a robust 3.91% YoY increase in consolidated profit for Q1 FY26, reaching Rs 10,957 crore. With a strong growth in net premium income and a notable rise in the value of new business, LIC continues its leadership in the insurance sector.
Key Takeaways
- 3.91% YoY increase in consolidated profit for Q1 FY26.
- Net premium income reached Rs 1,19,618.41 crore.
- Market share by First Year Premium Income at 63.51%.
- Value of new business (VNB) rose to Rs 1,944 crore.
- Declared final dividend of Rs 12 per share.
Mumbai, Aug 7 (NationPress) The Life Insurance Corporation of India (LIC), recognized as the largest life insurer in the country, announced a remarkable 3.91% year-on-year (YoY) growth in its consolidated net profit for the June quarter of the current financial year (Q1 FY26). This profit surged to Rs 10,957 crore, compared to Rs 10,544 crore from the same quarter last year (Q1 FY25), as reported in its stock exchange filing.
LIC's net premium income also demonstrated stable growth, reaching Rs 1,19,618.41 crore for the reviewed quarter - a 4.7% increase from Rs 1,14,230.24 crore in Q1 FY25.
“In the first quarter of this financial year, our total market share by First Year Premium Income was 63.51% and we maintained our leading position in both Individual and Group Business,” stated R Doraiswamy, CEO and MD of LIC.
“Key aspects of our strategy, such as enhancing Non Par share in Individual business, boosting VNB margin, and increasing Banca share, are all progressing well,” Doraiswamy further highlighted.
On a standalone level, LIC recorded a 5% YoY increase in profit, rising to Rs 10,986.51 crore from Rs 10,461.05 crore in the same quarter last year.
The company also witnessed strong growth in its non-participating (non-par) business. The proportion of non-par APE (annualized premium equivalent) in the individual segment rose to 30.34% during this quarter, an increase from 23.94% in the previous year.
The individual business non-par APE climbed significantly by 32.63% to Rs 2,142 crore, according to its regulatory filing.
LIC’s group business APE also experienced healthy growth, increasing 16.14% to Rs 5,590 crore. Overall, APE for the quarter rose by 9.45% to Rs 12,652 crore.
Notably, the value of new business (VNB), indicating the profitability of new policies sold, soared by 20.75% to Rs 1,944 crore.
LIC also enhanced its net VNB margin by 150 basis points, now standing at 15.4%.
In a favorable development for shareholders, LIC declared a final dividend of Rs 12 per share.
Point of View
I believe LIC's recent financial performance reflects not only its resilience but also its strategic focus on growth areas within the insurance market. The consistent increase in both profit and premium income is a clear indicator of its robust business model. As LIC continues to adapt and thrive, it remains a significant player in the financial landscape of India.
NationPress
05/10/2025
Frequently Asked Questions
What was LIC's consolidated profit growth in Q1 FY26?
LIC reported a consolidated net profit growth of 3.91% YoY, reaching Rs 10,957 crore.
How much did LIC's net premium income increase?
Net premium income for LIC increased by 4.7%, totaling Rs 1,19,618.41 crore.
What is the market share of LIC in First Year Premium Income?
LIC maintained a market share of 63.51% in First Year Premium Income.
What was the value of new business (VNB) for LIC?
The value of new business for LIC rose by 20.75% to Rs 1,944 crore.
What dividend did LIC declare for shareholders?
LIC declared a final dividend of Rs 12 per share for its shareholders.
