LIC Q1FY26 net profit up 5% to ₹10,987 cr; solvency, VNB margin improve
Mumbai: Life Insurance Corporation of India (LIC) reported a standalone net profit of ₹10,987 crore for the first quarter of FY26, marking a 5% increase from ₹10,461 crore in the corresponding period a year ago.
Net premium income also rose by 5% year-on-year to ₹1.19 lakh crore during the April–June quarter, up from ₹1.14 lakh crore in Q1 FY25, according to a Moneycontrol report.
The insurer’s solvency ratio—a key metric that reflects its ability to meet long-term financial obligations—climbed to 2.17 in Q1 FY26 from 1.99 in the year-ago quarter and 2.11 in the previous quarter.
Asset quality showed notable improvement, with gross non-performing assets (GNPA) down 21% year-on-year to ₹8,436.5 crore, and net NPAs falling sharply by 36% to ₹4 crore.
The gross NPA ratio declined to 1.42% from 1.95% in the same period last year.
However, new policy sales remained muted due to regulatory changes introduced in October, which reduced charges for premature policy exits.
Despite this, strong renewals helped shore up the company's income.
Within the individual business segment, the share of non-par APE (annualised premium equivalent) rose to 30.34%, up from 23.94% a year earlier. Individual non-par APE increased by 32.63% to ₹2,142 crore.
Group business APE grew by 16.14% to ₹5,590 crore, while total APE rose 9.45% year-on-year to ₹12,652 crore.
The value of new business (VNB) for the quarter stood at ₹1,944 crore, up 20.75%, while the VNB margin improved by 150 basis points to 15.4%.
“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 LIC’s CEO and MD R Doraiswamy.
LIC’s assets under management (AUM) expanded by 6.47% year-on-year, reaching ₹57.05 lakh crore.
For the quarter ended June 30, 2025, LIC retained a market share of 38.76% in the individual business segment and a commanding 76.54% in the group business, according to its regulatory filing.
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