Life Insurance Corporation of India’s (LIC’s) standalone net profit for the June quarter rose 22.81% year-on-year (YoY) to ₹13,492 crore on higher premium income and a surge in value of new business (VNB).
Total premium income of the State-owned insurer increased 6.75% YoY to ₹1,27,250 crore. CEO and MD R.Doraiswamy said despite increasing competition in the life insurance industry, LIC was able to maintain its leadership in both individual and group business during the quarter.
“Our overall market share by first year premium income was 60.10% and this fits in well with our market share strategy. VNB has grown by 61% plus to ₹3,136 crore and VNB margin expanded by 7.5% to 22.90%. This is a direct outcome of our product diversification and distribution strategy,” he said.
Solvency ratio increased to 2.42% (2.17%). Assets Under Management (AUM) went up 4.10% YoY to ₹59,39,384 crore. Overall expense ratio increased by 16 bps (basis points) to 10.63%, LIC said in a release.
The insurer’s market share was 38.89% in individual business and 70.90% in the group business during the quarter. It sold 31,02,281 policies in the individual segment, showing an increase of 2.06% YoY.
The yield on investments on policyholder’s fund excluding unrealised gains was 8.28% (8.45%).
Mr..Doraiswamy said LIC will be completing 70 years of existence on September 1, 2026 and to mark the occasion, innovative product launches and other initiatives are planned.
On West Asia crisis impact on the life insurance business and whether it will continue, he said though the performance numbers have improved, the growth in premium or the APE (annual premium equivalent) is not “what you would have expected. Certainly we see, there can be some impacts, particularly the lines of business directly related to interest rates or the markets like ULIPS or annuity. We will have to wait and watch.”
On the recently concluded offer for sale, through which the government offloaded 6.5% stake in LIC; Mr. .Doraiswamy said it helped achieve the Securities and Exchange Board of India mandate of 10% minimum public shareholding ahead of the May 2027 deadline. With its stake reduced to 90%, the government does not have any immediate pressure to offload anything further.
On the 2032 deadline for the Centre to bring down its stake to 75% or in other words the MPS (minimum public shareholding) to be increased to 25%, he said “I don’t expect the government to come up with any new offers [for sale] in immediate future. The government has got time… five years is too long a period for them to work out,” he said.
Published – August 06, 2026 09:55 pm IST
