LIC reports strong Q1FY27 results, PAT rises 22.8% to Rs 13,492 crore

The Board of Directors of Life Insurance Corporation of India (LIC) has approved and adopted the standalone and consolidated financial results for the quarter ended June 30, 2026. On a standalone basis, LIC posted a Profit After Tax (PAT) of Rs 13,492 crore for Q1FY27, compared to Rs 10,986 crore in the same quarter last year, registering a growth of 22.81 per cent.

LIC continued to maintain its leadership position in the Indian life insurance industry. As per IRDAI data based on First Year Premium Income, the overall market share stood at 60.10 per cent for the quarter. In the individual segment, LIC held a market share of 38.89 per cent, while in the group segment it was 70.90 per cent.

Total Premium Income for the quarter ended June 30, 2026 rose to Rs 1,27,250 crore from Rs 1,19,200 crore a year earlier, a growth of 6.75 per cent. Individual Business Premium increased by 5.52 per cent to Rs 75,416 crore from Rs 71,474 crore in Q1FY26. Group Business Premium grew 8.61 per cent to Rs 51,834 crore from Rs 47,726 crore in the corresponding quarter last year. In the individual segment, LIC sold 31,02,281 policies during the quarter, compared to 30,39,709 policies in Q1FY26, marking an increase of 2.06 per cent.

On an Annualised Premium Equivalent basis, total premium for the quarter stood at `13,692 crore. Individual Business accounted for 55.01 per cent or Rs 7,532 crore, while Group Business contributed 44.99 per cent or Rs 6,160 crore. Within Individual Business, Par products accounted for 67.51 per cent or Rs 5,085 crore on an APE basis, and Non-Par products contributed 32.49 per cent or Rs 2,447 crore. Non-Par APE grew 14.24 per cent from Rs 2,142 crore in Q1FY26 to Rs 2,447 crore in Q1FY27.

Consequently, the share of Non-Par in Individual APE increased to 32.49 per cent from 30.34 per cent a year ago. The Value of New Business for the quarter was Rs 3,136 crore compared to Rs 1,944 crore in Q1FY26, a growth of 61.32 per cent. The Net VNB Margin expanded by 750 basis points to 22.9 per cent from 15.4 per cent in the same period last year.

LIC’s Solvency Ratio improved to 2.42 as on June 30, 2026, from 2.17 as on June 30, 2025.

Persistency ratios showed a mixed trend. On a premium basis, the 13th month persistency was 75.33 per cent and the 61st month persistency was 61.12 per cent for Q1FY27, compared to 75.63 per cent and 63.85 per cent respectively in Q1FY26. On a number of policies basis, the 13th month persistency stood at 66.45 per cent and the 61st month at 48.74 per cent, against 64.35 per cent and 51.12 per cent respectively in the year-ago quarter.

Assets Under Management increased 4.10 per cent year-on-year to Rs 59,39,384 crore as on June 30, 2026, from Rs 57,05,341 crore a year earlier.

The Overall Expense Ratio was 10.63 per cent for the quarter, compared to 10.47 per cent in Q1FY26, an increase of 16 basis points. Yield on Investments on policyholders’ funds, excluding unrealised gains, was 8.28 per cent for the quarter, against 8.45 per cent in the corresponding quarter last year.

R Doraiswamy, CEO & MD, LIC said, “We are happy to maintain our leadership in both Individual and Group Business during the first quarter of this financial year, despite increasing competitive intensity in the life insurance industry. Our overall market share by First Year Premium Income was 60.10 per cent for the first quarter of FY 2026-27 and this fits in well with our market share strategy. What gives us even more happiness is that our VNB has grown by 61 per cent plus and our VNB margin has expanded by 7.5 per cent to 22.90 per cent this year.”