LIC reported robust results for the nine months ended December 31, 2025 (9MFY26), achieving a Total Premium Income growth of 9.02% YoY to ₹3,71,293 Crore. Profit After Tax (PAT) surged by 16.68% to ₹33,998 Crore. Value of New Business (VNB) grew 27.96%, and the VNB margin improved by 170 basis points to 18.8%. The company is focusing on strategic shifts toward higher-margin products and digital initiatives.
LIC Announces Strong Results for 9MFY26
Life Insurance Corporation of India (LIC) detailed its performance for the nine months ended December 31, 2025 (9MFY26), highlighting significant gains across key financial metrics during the conference call held on February 05, 2026. The management, led by CEO & MD Mr. R. Doraiswamy, emphasized sustained profitable growth and strategic channel development.
Key Financial Performance Indicators
The Total Premium Income reached Rs. 3,71,293 Crore, marking a 9.02% Year-on-Year (YoY) growth. Profit After Tax (PAT) demonstrated strong acceleration, growing by 16.68% to Rs. 33,998 Crore compared to the previous year.
The Value of New Business (VNB) saw substantial improvement, increasing by 27.96% YoY to Rs. 8,288 Crore. Crucially, the net VNB margin expanded by 170 basis points to reach 18.8% for the nine-month period, up from 17.1% in 9MFY25. The Solvency Ratio also saw an uptick, improving to 2.19 as of December 31, 2025, from 2.02 the year prior.
Shifting Business Mix and Product Focus
A significant strategic achievement was the growth in Non-Par share of Individual Annualized Premium Equivalent (APE), which increased to 36.46% in 9MFY26, up from 27.68% in 9MFY25. The total APE for the period stood at Rs. 44,007 Crore.
On the channel front, Bancassurance and Alternate Channels (BAC) demonstrated explosive growth, collecting New Business Premium Income of Rs. 3,341.37 Crore, a 66.74% YoY increase. This channel now accounts for 7.45% of Individual New Business Premium.
Operational Efficiency and Workforce
LIC successfully reduced its Overall Expense Ratio by 132 basis points to 11.65%. Digital initiatives, particularly the ANANDA agent app, supported operational efficiency, recording a 49.42% YoY growth in policies sold through the app. The agency workforce expanded to 14,72,370 agents.
Addressing Investor Queries
During the Q&A session, management provided color on several key areas:
- Health Insurance Entry: LIC is actively evaluating opportunities to enhance its investment portfolio, including enhancing its stake in a health insurance company, though no immediate deadline was set.
- VNB Margin Drivers: The improvement in margin was attributed to a favourable yield curve (contributing 1.9%), changes in business mix favoring Non-Par (contributing 48% to margin increase), and operational factors including the impact of GST and persistency alignment.
- Persistency: Persistency across cohorts remains a focus area. Management noted that low ticket size policies and high payment frequency negatively impact persistency, and recent product interventions aimed at increasing minimum ticket size are expected to yield positive results in future quarters.
- Market Share: Overall market share by First Year Premium Income slightly declined to 57.07%, which the management attributed to the overall expansion of the insurance market and the entry of new players.
Closing Remarks
The management reiterated its commitment to continuous profitable growth, channel mix optimization, and using digital tools to achieve the national aim of “Insurance for all by 2047.”
Source: BSE
