Analysts See Gains in LIC After Strong Q1

Life Insurance Corporation of India (LIC) reported encouraging results for the April-June quarter (Q1) of FY26.

- DEVANGSHU DATTA

The net premium income of India's largest life insurer was ₹1.2 trillion, up 5 per cent year-on-year (Y-o-Y), in Q1.

Renewal premium grew 6 per cent Y-o-Y to ₹59,900 crore, while first-year and single premium grew 1 per cent and 4 per cent Y-o-Y respectively to ₹7,500 crore and ₹51,900 crore.

The new business APE (annualised premium equivalent) rose 9 per cent Y-o-Y to ₹12,700 crore with individual APE growing 9 per cent Y-o-Y to ₹7,060 crore and group APE rising 16 per cent Y-o-Y to ₹5,590 crore. Individual APE growth of 9 per cent Y-o-Y was driven by 33 per cent Y-o-Y growth in non-par (non-participating) APE to ₹2,140 crore, which was offset by a 4 per cent Y-o-Y decline in par (participating) APE to ₹4,920 crore. Non-participating plans provide fixed premiums and guaranteed benefits without the potential for additional returns to the policyholders.

The Absolute VNB (value of new business) grew 21 per cent Y-o-Y to ₹1,900 crore. The VNB margin improved Y-o-Y to 15.4 per cent (13.9 per cent in Q1FY25). The Solvency Ratio improved to 217 per cent in Q1FY26 from 199 per cent in Q1FY25. The non-par contribution rose to 16.9 per cent (14 per cent in Q1FY25) of total APE. Commission expenses declined 3 per cent Y-o-Y to ₹4,950 crore and operating expenses fell 10 per cent Y-o-Y to ₹7,550 crore.