LIC Reports 22.81% Jump in Q1 FY27 Net Profit to ₹13,492 Crore: VNB Skyrockets 61.32%
Published: 7 August 2026
Life Insurance Corporation of India (LIC) announced its standalone financial results for the first quarter ending June 30, 2026 (Q1 FY2026-2027), delivering strong earnings across key metrics. The state-owned insurance giant posted a 22.81% year-on-year (YoY) increase in Profit After Tax (PAT), driven by robust business growth, expanding margins, and an improved product mix.
Key Financial Highlights for Q1 FY2026-2027
Here is a quick look at LIC’s performance for the quarter ending June 30, 2026, compared to the same period in the previous financial year:
| Particulars | Q1 FY2025-26 | Q1 FY2026-27 | YoY Growth (%) |
| Profit After Tax (PAT) | ₹10,986 crore | ₹13,492 crore | +22.81% |
| Value of New Business (VNB) | ₹1,944 crore | ₹3,136 crore | +61.32% |
| Net VNB Margin | 15.4% | 22.9% | +750 bps |
| Total Premium Income | ₹1,19,200 crore | ₹1,27,250 crore | +6.75% |
| Individual New Business Premium | ₹12,536 crore | ₹14,351 crore | +14.48% |
| Total Annualized Premium Equivalent (APE) | ₹12,652 crore | ₹13,692 crore | +8.22% |
| Assets Under Management (AUM) | ₹57,05,341 crore | ₹59,39,384 crore | +4.10% |
| Solvency Ratio | 2.17 | 2.42 | +25 bps |
| Individual Policies Sold | 30,39,709 | 31,02,281 | +2.06% |
What Drove LIC’s Performance in Q1?
1. Exceptional VNB Growth & Margin Expansion
The Value of New Business (VNB) for the quarter reached ₹3,136 crore, marking a dramatic surge of 61.32% from ₹1,944 crore in Q1 FY26. Concurrently, the net VNB margin expanded by 750 basis points (bps) to 22.90%, up from 15.40% in the corresponding quarter last year.
This margin expansion reflects LIC’s strategic pivot toward high-margin products and diversification within its distribution channels.
2. Shift Toward Non-Participating (Non-Par) Products
A major catalyst behind the enhanced profitability is the increasing share of Non-Par products in the individual business segment:
- Non-Par APE (Individual Business) grew by 14.24% to ₹2,447 crore (up from ₹2,142 crore in Q1 FY26).
- On an APE basis, Non-Par products now account for 32.49% of the individual business product mix, up from 30.34% in Q1 FY26.
- Par products contributed 67.51% (₹5,085 crore) to the individual APE mix.
3. Industry Dominance & Market Share
LIC maintains its commanding leadership in the Indian life insurance market. As measured by First Year Premium Income (FYPI) per IRDAI data:
- Overall Market Share:60.10%
- Individual Segment Share:38.89%
- Group Business Share:70.90%
4. Balance Sheet Strength & Asset Expansion
- Assets Under Management (AUM): LIC’s total AUM grew 4.10% YoY to reach ₹59,39,384 crore ($59.39+ trillion INR), compared to ₹57,05,341 crore as of June 30, 2025.
- Solvency Ratio: The corporation’s solvency ratio strengthened to 2.42, well above the regulatory threshold of 1.50 and up from 2.17 in the prior year period.
- Expense Ratio: The overall expense ratio registered a minor change, moving to 10.63% compared to 10.47% in Q1 FY26.
Persistency Ratios Update
LIC showed resilience in its customer retention metrics:
- 13th Month Persistency (Premium Basis): 75.33% (vs. 75.63% in Q1 FY26)
- 61st Month Persistency (Premium Basis): 61.12% (vs. 63.85% in Q1 FY26)
- 13th Month Persistency (Number of Policies): Improved to 66.45% (vs. 64.35% in Q1 FY26)
- 61st Month Persistency (Number of Policies): 48.74% (vs. 51.12% in Q1 FY26)
Leadership Insight: MD & CEO Commentary
Commenting on the quarterly numbers, Shri R Doraiswamy, CEO & MD of LIC, stated:
“We are happy to maintain our leadership in both Individual and Group Business during the first quarter of this financial year, despite increasing competitive intensity in the life insurance industry… What gives us even more happiness is that our VNB has grown by 61% plus and our VNB margin has expanded by 7.5% to 22.90% this year. This is a direct outcome of our product diversification and distribution strategy.”
He also highlighted key recent milestones, including the Government of India’s successful divestment of an additional 6.5% stake through an Offer for Sale (OFS), welcoming new shareholders to the LIC family. Additionally, CEO Doraiswamy noted that on 1st September 2026, LIC will complete 70 years of operation, promising innovative product launches and customer-centric initiatives to mark the anniversary.
The Bottom Line
LIC’s Q1 FY2026-2027 results highlight a company successfully executing its structural shift toward margin-accretive Non-Par products while maintaining a massive 60%+ total market share in India. With a solid solvency position of 2.42 and near-60 trillion rupee AUM base, LIC remains positioned for continued steady financial growth.
Disclaimer: This article is for educational and informational purposes only. It should not be considered investment or financial advice. Investors should conduct their own research or consult a qualified financial advisor before making any investment decisions.