India’s largest life insurer had reported a net profit of ₹10,461 crore in the year ago period.
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AMAN RAJ
Life Insurance Corporation of India (LIC) reported a 5 per cent increase in first quarter (Q1FY26) standalone net profit at ₹10,987 crore, with the bottomline supported by healthy growth in income from investments and decline in operating expenses related to insurance business.
India’s largest life insurer had reported a net profit of ₹10,461 crore in the year ago period.
Net premium income (including first year premium, renewal premium and single premium net of reinsurance) rose about 5 per cent year-on-year (y-o-y) to ₹1,19,200 crore (₹1,13,770 crore in Q1FY25).
Net income from investments was up 7 per cent y-o-y at ₹1,02,930 crore (₹96,183 crore).
Operating expenses related to insurance business declined 10 per cent y-o-y to ₹7,549 crore (₹8,431 crore).
Referring to the strong 34 per cent increase in Annualized Premium Equivalent (APE) in the case of non-participatory products and Net VNB (value of new business) margin going up to 15.4 per cent from 13.9 per cent, a senior official attributed this to many interventions by the Corporation in the past year, including modifications in products on account of regulatory provisions and also the fact that it keeps modifying products on the margins.
LIC’s 13th month persistency ratio (on number of policy basis) declined to 64.35 per cent from 67.81 per cent. In the regard, R Doraiswamy, CEO & MD, said, “We normally find that the policies with lower ticket size policies are the ones which we tend to have a lower persistency. So, since the cohort of policies that is being measured for the current quarter belong to the earlier regime of policies, the persistency of 13th month has come down a bit.
“So, we’ll be making all out efforts to see that they (policyholders) are also contacted and revived so that we increase the persistency as the policy term goes ahead.”
Published on August 7, 2025
