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Informist, Thursday, Aug. 6, 2026

 

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--LIC Apr-Jun net profit INR 134.92 bln 
--LIC Apr-Jun net premium income INR 1.27 tln 
--LIC Apr-Jun net profit INR 134.92 bln vs INR 109.87 bln year ago 
--LIC Apr-Jun net premium income INR 1.27 tln vs INR 1.19 tln year ago 
--LIC solvency ratio at 2.42 times on Jun 30 vs 2.17 times year ago 
--LIC 13th month persistency 70.38% Jun 30 vs 67.77% qtr ago, 70.90% yr ago 
--LIC 61st month persistency 61.27% Jun 30 vs 54.13% qtr ago, 58.31% yr ago 
--LIC Apr-Jun first year premium INR 92.17 bln vs INR 75.25 bln yr ago 
--LIC assets under management at INR 59.39 tln on Jun 30, up 4.1% on yr
--LIC Apr-Jun value of new business INR 31.36 bln, up 61.3% on year 
--LIC Apr-Jun net value of new business margin 22.9%, up 750 bps on year 

 

By Vaishali Tyagi

 

NEW DELHI – State-owned insurer Life Insurance Corp. of India Ltd. reported strong year-on-year net profit growth for the June quarter, driven by a rise in net premium income. However, profit fell sequentially after two consecutive quarters of strong growth. 

 

The insurer's net profit rose nearly 23% on year to INR 134.92 billion in the June quarter. The net profit was down nearly 42% sequentially. LIC's net premium income for the reporting quarter rose nearly 7% on year to INR 1.27 trillion. However, it was down nearly 23% on quarter. The net income from investments increased by over 6% on year and remained broadly flat quarter-on-quarter to INR 1.09 trillion.

 

The company released its June quarter results post market hours. Thursday, shares of the company closed down over 1% at INR 387.55 after rising to a high of INR 391.40 apiece on the National Stock Exchange.   

The insurer's total income was INR 2.38 trillion in the June quarter, up nearly 7% from INR 2.23 trillion in the corresponding quarter a year ago. It was down over 14% sequentially.  

 

The insurance company's first-year premium for the June quarter was INR 92.17 billion, up from 75.25 billion in the June quarter last year. Howver, it was down from INR 129.70 billion in the trailing quarter.  

 

An increase in management expenses limited the rise in the company's bottom line. The company's management expenses rose over 8% on year to INR 135.41 billion.  

 

LIC reported an improvement in its solvency ratio to 2.42 times as of Jun. 30 from 2.17 times a year ago. The insurer's persistency ratio for the 13th month was 70.38% as of Jun. 30, up from 67.77% a quarter ago and similar to year ago's ratio at 70.90%. The persistency ratio for the 61st month was 61.27% as of Jun. 30, down from 58.31% a year ago and 54.13% a quarter ago.

 

As of Mar. 31, the company's assets under management were at INR 59.39 trillion, up over 4% from a year ago. The value of new business rose to INR 31.63 billio, up over 61% on year and net value of new business margin was up 750 basis points on year to nearly 23%. 

 

On an annualised premium equivalent basis, the total premium was INR 136.92 billion for the quarter ended Jun. 30. Of this, 55.01% was accounted for by the individual business and 44.99% by the group business. Within the individual business, the share of par products on an annualised premium equivalent basis was 67.51%, while the balance was 32.49% contributed by non-par products.

 

The non-par annualised premium equivalent has increased to INR 24.47 billion for the quarter ended Jun. 30, up from INR 21.42 billion for the June quarter in 2025. The overall expense ratio for the quarter ended June was 10.63% as compared to 10.47% for the corresponding quarter a year ago. The yield on investments on policyholder's fund, excluding unrealised gains, was 8.28% for the quarter ended June as against 8.45% a year ago. 

 

"VNB (value of new business) has grown by 61% plus and our VNB margin has expanded by 7.5% to 22.90% this year," R. Doraiswamy said in the press release. "This is a direct outcome of our product diversification and distribution strategy."  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Deepshikha Bhardwaj

 

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