LIC standalone net profit rises 22.81% in June 2026 quarter
The Life Insurance Corporation of India (LIC) reported a 22.81% year-on-year increase in its standalone net profit for the quarter ended June 2026, according to the latest financial results. The state-owned insurer's profit after tax stood at ₹10,461 crore, up from ₹8,520 crore in the corresponding quarter of the previous fiscal. This growth was driven by a combination of higher premium income, improved persistency ratios, and a robust performance in the non-participating segment, which helped offset pressure from higher commission expenses and policyholder payouts.
Gross premium income for the quarter rose 8.4% to ₹1,14,321 crore, compared with ₹1,05,489 crore in the year-ago period. The renewal premium component grew by 7.9%, while first-year premium expanded by 10.2%, indicating healthy demand for LIC's products, particularly in the individual non-single premium category. The company's value of new business (VNB) margin also improved, reflecting better product mix and cost efficiency. Analysts attribute the strong performance to LIC's continued focus on high-margin protection and annuity products, as well as its digital initiatives that have streamlined customer acquisition and servicing.
On the expense side, the expense ratio (as a percentage of total premium) declined to 12.3% from 13.1% a year earlier, showcasing operational discipline. The solvency ratio remained robust at 1.92, well above the regulatory minimum of 1.50, providing a cushion for future growth. LIC's assets under management (AUM) crossed ₹55.8 lakh crore as of June 30, 2026, up from ₹52.4 lakh crore a year ago, aided by strong equity market performance and steady inflows into unit-linked plans.
Despite the positive results, some challenges persist. The company's surrender value and maturity payouts increased, leading to a 4.6% rise in benefits paid (net of reinsurance). Additionally, the persistency ratio for the 13th month stood at 79.2%, slightly lower than the 80.5% recorded in the same quarter last year, indicating a need for continued focus on policyholder retention. Nevertheless, LIC's board has maintained its guidance for a double-digit growth in VNB for the full fiscal year, supported by product innovation and an expanding agency network.
| Metric | Q1 FY27 (Jun 2026) | Q1 FY26 (Jun 2025) | Change (%) |
|---|---|---|---|
| Net Profit (₹ crore) | 10,461 | 8,520 | +22.81% |
| Gross Premium (₹ crore) | 1,14,321 | 1,05,489 | +8.4% |
| Expense Ratio (%) | 12.3 | 13.1 | -0.8 pp |
| Solvency Ratio | 1.92 | 1.85 | +0.07 |
| AUM (₹ lakh crore) | 55.8 | 52.4 | +6.5% |
| 13th Month Persistency (%) | 79.2 | 80.5 | -1.3 pp |
Analysts say the double-digit profit growth underscores LIC's resilient business model, but they caution that rising surrender payouts and a dip in persistency warrant close monitoring in the coming quarters.
Looking ahead, LIC remains well-positioned to benefit from the growing insurance penetration in India, particularly in tier-2 and tier-3 cities. The company's bancassurance partnerships and online distribution channels are expected to drive further premium growth. With a strong capital base and improving operational metrics, LIC is likely to sustain its momentum, although market volatility and competitive pressures from private insurers remain key risks. For investors, the stock's performance will hinge on the company's ability to maintain underwriting discipline and expand its high-margin product portfolio.
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