LIC Q1 Results: PAT rises 5% YoY to Rs 10,987 crore, NPI up 5% as well
(
LIC
) on Thursday reported 5% year-on-year (YoY) growth in its standalone net profit at Rs 10,987 crore in the first quarter.
Net premium income
during the same period increased 5% YoY to Rs 1.19 lakh crore.
The
net premium
income growth was led by an increase in both individual and group business premiums.
In terms of market dominance, LIC maintained its leadership with a 63.51% share in First Year Premium Income (FYPI), as per IRDAI data. Within segments, it commanded a 38.76% share in the Individual business and a dominant 76.54% share in Group business.
The individual premium income rose 6% YoY to Rs 71,474 crore, while group premium income saw a 2.46% rise to Rs 47,726 crore. However, the number of policies sold in the individual segment declined 14.75% to 30.39 lakh in Q1FY26.
On an Annualized Premium Equivalent (APE) basis, the total premium stood at Rs 12,652 crore, with individual business accounting for 56% (Rs 7,061 crore) and the rest from group business. Within the individual segment, Non-Par products surged 33% YoY to Rs 2,142 crore, raising their share to 30.34%, compared to 23.94% in Q1FY25.
The Value of New Business (VNB) rose 21% YoY to Rs 1,944 crore, and the VNB margin expanded 150 basis points to 15.4%, reflecting improved profitability and product mix.
LIC's assets under management (AUM) rose 6% YoY to Rs 57.05 lakh crore, while the expense ratio improved by 140 basis points to 10%. The yield on investments (excluding unrealized gains) was 8.45%, slightly down from 8.54% a year ago.
Persistency metrics were mixed: the 13th-month persistency ratio on premium basis fell to 75.63% (from 78.23%) and the 61st-month improved slightly to 63.85% (from 61.62%).
LIC MD and CEO R Doraiswamy said the growth in non-par products, VNB margins, and bancassurance share reflects strong execution of the company's strategic priorities. Over 1.99 lakh women Bima Sakhis were appointed by June 30, who together sold more than 3.26 lakh policies in
Q1
.
On Thursday, LIC shares closed 0.7% lower at Rs 886 on NSE.
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