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Life Insurance Corp spurts after Q1 PAT jumps 5% YoY to Rs 10,987 cr

08-Aug-25 11:07 Hrs IST

Net premium income rose 4.77% to Rs 1,19,200.39 crore in Q1 FY26, compared with Rs 1,13,770.14 crore in Q1 FY25.

The total individual business Premium for the quarter ended 30 June 2025, increased to Rs 71,474 crore, up 6.37% from Rs 67,192 crore in the corresponding period of the previous year.

The group business total premium income for the quarter stood at Rs 47,726 crore, reflecting a 2.46% increase compared to Rs 46,578 crore in the quarter ended 30 June 2024.

A total of 30,39,709 policies were sold in the individual segment during the quarter ended 30 June 2025, compared to 35,65,519 policies sold in the same quarter last year, registering a decline of 14.75% year-on-year.

Profit before tax (PBT) increased 5.21% year on year (YoY) to Rs 11,006.14 crore in Q1 FY26.

For the quarter ended 30 June 2025, the persistency ratios on a premium basis for the 13th and 61st months were 75.63% and 63.85%, respectively. The comparable persistency ratios for the quarter ended 30 June 2024, were 78.23% and 61.62%, respectively.

On a number of policies basis, the persistency ratios for the 13th and 61st months in Q1 FY26 stood at 64.35% and 51.12%, respectively, compared to 67.81% and 49.39% in the corresponding quarter of the previous year.

The assets under management (AUM) stood at Rs 57,05,341 crore as on 30 June 2025, reflecting a 6.47% increase from Rs 53,58,781 crore reported on 30 June 2024.

The value of new business (VNB) for the quarter ended 30 June 2025, stood at Rs 1,944 crore, up 20.75% from Rs 1,610 crore in the corresponding quarter of the previous year.

The net VNB margin for the quarter increased by 150 basis points to 15.4%, compared to 13.9% in Q1 FY25.

The solvency ratio as of 30 June 2025, improved to 2.17, up from 1.99 as of 30 June 2024.

The overall expense ratio for the quarter ended 30 June 2025, stood at 10.47%, down 140 basis points from 11.87% in the same quarter of the previous year.

The yield on investments on policyholders' funds, excluding unrealized gains, was 8.45% for the quarter ended 30 June 2025, compared to 8.54% for the quarter ended 30 June 2024.

R Doraiswamy, CEO & MD, LIC, said, 'During the first quarter of this financial year, our overall market share by First Year Premium Income was 63.51% and we maintained our leadership in both Individual and Group Business. Key elements of our strategy like increase in Non Par share in Individual business, increase in VNB margin, increase in Banca share are fully on track.

The share of Non Par products within Individual segment, on an APE basis, has increased to 30.34% in the first quarter of FY26 as compared to 23.94% for the same quarter last year. VNB margin has increased by 150 bps to 15.4% on Year on Year basis, while our expense ratio has declined by 140 bps to 10.47% in this quarter. Our channel mix diversification strategy is visible with the increased share of bancassurance and alternate channels.

As at 30th June 2025, more than 1.99 lakh women have been appointed as Bima Sakhis who have sold more than 3.26 lakh policies during the first quarter of FY26. We look forward to working with the regulatory authorities and various State and District Level Insurance Committees to further increase life insurance penetration in our country. We are focused on launching new products to meet customer needs and further enhancing our customer outreach.'

LIC has been providing life insurance in India for more than 65 years and is the largest life insurer in the country.