The Life Insurance Corporation of India (LIC) posted a robust 22.8 per cent increase in net profit at Rs 13,492 crore for the first quarter (April-June) of the current financial year, compared with Rs 10,987 crore in the same period last year.
The strong performance came on the back of healthy premium growth, a sharp improvement in new business profitability, and higher investment income.
The net premium income of the country's largest life insurer increased 7 per cent year-on-year to Rs 1.27 lakh crore, while other income jumped to Rs 635 crore from Rs 130 crore a year ago. A key highlight of the quarter was the significant improvement in the insurer's Value of New Business (VNB), which jumped 61 per cent to Rs 3,136 crore compared to the same quarter of 2025-26.
The VNB margin expanded 750 basis points to 22.9 per cent from 15.4 per cent in the year-ago period, reflecting improved product mix and stronger profitability from new business written during the quarter.
The LIC also reported robust growth in first-year premium income, which recorded a 22 per cent year-on-year growth to Rs 9,217 crore, reflecting the healthy traction in new policy sales.
The total income of the insurer during the reporting quarter improved to Rs 2,37,848 crore from Rs 2,22,864 crore in the same period of the preceding fiscal year, the LIC said in an exchange filing.
The insurer further strengthened its balance sheet during the quarter, with the solvency ratio improving to 2.42 from 2.17 a year earlier, remaining comfortably above the regulatory requirement.
The LIC’s total expenses rose to Rs 2,25,573 crore during the first quarter compared to Rs 2,11,928 crore in the same quarter of the previous financial year.
Its assets under management touched the Rs 59,39,384 crore mark, up 4.1 per cent year-on-year.
The financial results were announced after market hours. LIC shares closed 1.39 per cent lower at Rs 387.55 per share on Thursday.
--IANS
