LIC Q1 Results: Net Profit Grows 4% YoY to Rs 10,957 Cr, Premium Income Rises 4.7%; VNB Margin Expands

Life Insurance Corporation of India (LIC), the country's largest insurer, announced its financial results for the first quarter of the current financial year (Q1FY26) on Thursday, August 7. The company reported a modest 4% year-on-year (YoY) increase in its consolidated net profit for the April-June quarter.

LIC Q1 Results Live: 4% Net Profit Increases

According to the regulatory filing, LIC posted a consolidated profit of Rs 10,957 crore for Q1FY26, compared to a profit of Rs 10,544 crore reported in the same quarter of the previous financial year (Q1FY25). The rise in profit indicates a steady growth trajectory and reflects LIC's continued dominance in the insurance sector despite a highly competitive market.

Net Premium Income Shows Steady Growth

In addition to the increase in profit, LIC also reported a rise in its net premium income, a key performance metric for insurance companies. For the quarter ended June 30, 2025, the insurer's net premium income stood at Rs 1,19,618.41 crore. This represents a 4.7% increase over the Rs 1,14,230.24 crore reported during the same period last year.

LIC Assets Under Management (AUM) and Investment Performance

One of the key highlights of the quarter was the robust growth in LIC's Annualised Premium Equivalent (APE), a key indicator of new business performance. The overall APE grew by 9.45% YoY to Rs 12,652 crore. Within this, the individual business non-participating (non-par) APE saw a significant increase of 32.63%, reaching Rs 2,142 crore.

Notably, the share of non-par APE within the individual business rose to 30.34%, compared to 23.94% in the same quarter last year. This indicates a shift in product mix towards more profitable non-par products, which typically offer higher margins for insurers.

LIC's group business APE also posted solid growth, rising by 16.14% to Rs 5,590 crore. The growth across both individual and group segments demonstrates LIC's ability to expand its footprint among retail customers and institutional clients alike.

As a result of this momentum, the value of new business (VNB) for the quarter increased by 20.75% YoY to Rs 1,944 crore, reflecting higher profitability of new policies issued during the period. Furthermore, LIC's net VNB margin improved by 150 basis points to 15.4%, underscoring enhanced efficiency and improved product economics.

Alongside rising profitability, LIC reported a decline in its expense ratio, which fell by 140 basis points YoY to 10.47% in Q1FY26. The company's financial strength was further underscored by the growth in its assets under management (AUM), which rose by 6.47% YoY to Rs 57.05 lakh crore as of June 30, 2025.

"For the quarter ended June 30th, 2025, LIC had a market share of 38.76 per cent in individual business and 76.54 per cent in the group business," announced R Doraiswamy, CEO and MD, LIC.

This increase reflects strong inflows from premium collections and healthy investment returns. The yield on investments in policyholders' funds, excluding unrealised gains, stood at 8.45% during the quarter, slightly lower than the 8.54% reported in the same period last year, but still indicative of stable and prudent investment management amid dynamic market conditions.