LIC's Q1 profit grows 5% to ₹10,986 cr on strong growth in premium income, VNB
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India's largest life insurer, Life Insurance Corporation (LIC), recorded 5.02% year-on-year growth in its profit after tax (PAT) for the quarter ended June 30th, 2025, at ₹10,986 crore as compared to ₹10,461 crore for the quarter ended June 30th, 2024, driven by higher value of new business (VNB), better margins and strong premium income growth.
In terms of market share, LIC continues to be the market leader in the Indian life insurance business, with an overall market share of 63.51%. For the quarter ended June 30th, 2025, LIC had a market share of 38.76% in individual business and 76.54% in the group business.
The total premium income for the quarter ended June 30th, 2025, was ₹1,19,200 crore compared to ₹1,13,770 crore for the quarter ended June 30th 2024, registering a growth of 4.77%. The total individual business premium for the quarter ended June 30th, 2025, increased to ₹71,474 crore from ₹67,192 crore for the comparable period of the previous year, showing an increase of 6.37%. The group's business total premium income for the said period was ₹47,726 crores as compared to ₹46,578 crores in the year-ago period, showing an increase of 2.46%.
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A total of 30,39,709 policies were sold in the individual segment in Q1 FY26 as compared to 35,65,519 policies sold in the year-ago period, a decline of 14.75%.
R Doraiswamy, CEO & MD, LIC, said the key elements of LIC's strategy, like an increase in non-par share in individual business, an increase in VNB margin, increase in Banca share, are fully on track. "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 says the value of new business (VNB) for the quarter ended June 30th, 2025, was ₹1,944 crore as compared to ₹1,610 crore in the year-ago period, a growth of 20.75%. The net VNB margin for Q1 FY26 increased by 150 bps to 15.4% vs 13.9% in the year-ago period.
LIC's assets under management (AUM) increased to ₹57,05,341 crore as on June 30th, 2025, compared to ₹53,58,781 crore in the year-ago period, thereby registering an increase of 6.47% year-on-year.
The overall expense ratio for the said quarter dipped 140 bps to 10.47% as compared to 11.87% in the year-ago period. The yield on investments on policyholders' funds, excluding unrealised gains, was 8.45% in Q1 FY26 against 8.54% for the quarter ended June 30, 2024.
Shares of LIC closed 0.71% down at ₹886.40 today on the NSE.
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