LIC Q1 FY27 Delivers Strong Profit Growth and Margin Improvement Amid Market Share Shifts
Life Insurance Corporation of India (LIC) reported a robust performance in its first quarter of fiscal year 2026-27, driven by significant growth in profit after tax and improved underwriting margins. The company announced that profit after tax grew by 22.81% to 13,492 crore rupees for the quarter ended June 30, 2026, compared to 10,986 crore rupees in the corresponding period of FY25.The quarterly results also highlighted an impressive boost in profitability metrics, with the net VNB margin increasing by 750 basis points to 22.9%, up from 15.4% during Q1 FY25. Furthermore, Net VNB registered a substantial growth of 61.32%, reaching 3,136 crore rupees in Q1 FY27.
Financial and Operational Highlights
LIC recorded total premium income of 127,250 crore rupees for the three-month period ending June 30, 2026, marking a 6.75% year-on-year growth compared to 119,200 crore rupees in Q1 FY25.The company maintained leadership across both individual and group business segments. The market share by first-year premium income stood at 60.10% as per IRDAI, down from 63.51% in the same period last year. Segment-wise, LIC held a 38.89% market share in individual business and 70.90% in group business.
A closer look at premium income reveals several growth areas:
| Premium Category | Q1 FY26 Income (Crore Rupees) | Q1 FY25 Income (Crore Rupees) | Y-o-Y Growth |
|---|---|---|---|
| Total Individual Premium Income | 75,416 | 71,474 | 5.52% |
| Individual New Business Premium | 14,351 | 12,536 | 14.48% |
| Individual Renewal Premium | 61,065 | 58,938 | 3.61% |
| Group Total Premium Income | 51,834 | 47,726 | 8.61% |
Total Annualized Premium Equivalent (APE) for the quarter reached 13,692 crore rupees, comprising individual APE of 7,532 crore rupees and group APE of 6,160 crore rupees. On an APE basis, individual business contributed 55.01%, and group business accounted for 44.99%. The non-par share of individual APE reached 32.49%, up from 30.34% in Q1 FY25.
Asset Management and Efficiency Ratios
Assets Under Management (AUM) grew by 4.1% year-on-year, reaching 59,39,384.39 crore rupees as of June 30, 2026, up from 57,05,341.44 crore rupees in the previous year.Operational efficiency saw mixed results. The overall expense ratio for Q1 FY27 was 10.63%, compared to 10.47% last year, indicating a 16 basis point increase. This ratio is influenced by factors including the loss of input tax credit following GST implementation on individual lines of insurance business.
The company continued its digital transformation journey, launching two new products: LIC's New Jeevan Sathi single premium and LIC's New Jeevan Sathi limited premium. One product, LIC's Nav Jeevan Shree single premium, was withdrawn during the quarter.
Channel Performance and Agent Data
LIC sold 31,02,281 new policies in Q1 FY27, a 2.06% increase from the 30,39,709 policies sold in the corresponding period last year. Agency force contributed substantially to this growth, with 30,55,909 agency force policies sold during the quarter.Bancassurance and alternate channels generated 907.14 crore rupees in new business premium income, a 5.25% increase from 861.92 crore rupees in Q1 FY25. While bank channel NBP decreased by 8.62% to 483.39 crore rupees (from 528.97 crore rupees), the alternate channels saw significant growth, rising 27.27% to 423.75 crore rupees from 332.94 crore rupees in Q1 FY25.
The total number of agents stood at 14,45,692 as of June 30, 2026, reflecting a decrease of 2.73% year-on-year.
Claims and Social Impact
In terms of claims processing for the quarter:| Claim Type | Total Amount (Crore Rupees) | YoY Change in Amount | Total Number of Claims | YoY Change in Number |
|---|---|---|---|---|
| Maturity Claims | 57,099 | Up by 12.88% | N/A | Down by 10.94% |
| Death Claims | 5,934 | Up by 0.97% | N/A | Down by 3.09% |
On the social impact front, LIC had designated 2,87 lakh women as Bima Sakhis, generating a new business premium income of 656.91 crore rupees from selling 4.52 lakh policies. The company covered 151,620 gram panchayats out of 244,876 by recruiting these Bima Sakhis.
Regarding capitalization structure, the report noted that the Government of India's sale of a 6.5% stake through an offer-for-sale (OFS) resulted in LIC’s public float rising to 10%, ensuring compliance with applicable minimum public shareholding norms.
Management stated that while margins have improved, the full-year VNB margin is expected to continue improving and settling near industry average levels as the company focuses on enhanced operational efficiency.
LICI Stock Price Movement
Life Insurance Corporation of India shares rallied on Wednesday, finishing at ₹417 after climbing by ₹11.00 to see a 2.71% gain for the day. The stock traded within a tight range during the session, moving from a low of ₹404.7 to hit its daily high of ₹417.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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