Life Insurance Corporation of India (LIC) reported a strong financial performance for the first quarter of FY27, with its net profit rising 22.8% year on year to ₹13,492 crore. The insurer had reported a net profit of ₹10,987 crore in the same quarter last year. The growth was supported by higher premium income, improved new business profitability and stronger investment income.
LIC reports growth in premium income
LIC’s net premium income increased 7% year on year to ₹1.27 lakh crore during the April to June quarter. First year premium income also recorded strong growth, rising 22% to ₹9,217 crore. Other income increased sharply to ₹635 crore from ₹130 crore in the year ago period.
The increase in premium income reflects continued demand for LIC’s insurance products. The company has also been focusing on improving its product mix and strengthening its new business performance.
VNB jumps 61% in Q1 FY27
One of the key highlights of the LIC Q1 results was the strong growth in Value of New Business (VNB). LIC’s VNB increased 61% to ₹3,136 crore during the quarter, compared with the year ago period.
The VNB margin also improved by 750 basis points to 22.9%. The improvement points to higher profitability from new policies and a better product mix. Stronger VNB performance remains important for LIC as it focuses on improving the quality and profitability of its new business.
Total income rises to ₹2.37 lakh crore
LIC’s total income increased to ₹2,37,848 crore in Q1 FY27 from ₹2,22,864 crore in the corresponding period last year. Total expenses also increased during the quarter and stood at ₹2,25,573 crore.
Despite the increase in expenses, LIC maintained strong profitability. Higher premium income, improved new business margins and investment returns supported the overall financial performance.
LIC strengthens solvency position
The insurer also reported an improvement in its financial strength. LIC’s solvency ratio rose to 2.42, compared with 2.17 a year earlier. The ratio remained comfortably above the regulatory requirement.
A stronger solvency position provides greater financial stability and supports LIC’s ability to meet its long term obligations to policyholders. The improvement also reflects the company’s focus on maintaining adequate capital strength as its business expands.
Assets under management cross ₹59 lakh crore
LIC’s assets under management (AUM) increased 4.1% year on year to ₹59.39 lakh crore. The large asset base reinforces LIC’s position as India’s largest life insurer and one of the country’s major institutional investors.
The growth in AUM, along with higher profitability and improved VNB margins, highlights the company’s focus on sustainable business growth. LIC is also seeking to strengthen customer acquisition and improve returns while maintaining financial resilience.
LIC shares decline after results
Despite the strong quarterly performance, LIC shares closed 1.39% lower at ₹387.55 on the day the results were announced. The market movement came even as the company reported higher profit, premium income and VNB.
Overall, the LIC Q1 FY27 results reflect improvement across several key financial indicators. Higher net profit, strong VNB growth, rising premium income and an improved solvency ratio point to a stronger operating and financial position for India’s largest life insurer.
