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Life Insurance Corp's Q1 consolidated net profit rose 4.11% to Rs 10,985 crore
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Net premium income increased 4.71% to Rs 1,19,618 crore in Q1 FY25
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Annual premium equivalent grew 9.45% to Rs 12,652 crore year-on-year
Life Insurance Corp.'s consolidated net profit rose 4.11% in the first quarter of the current financial year.
The country's largest insurer posted a profit of Rs 10,985 crore in the quarter ended June, as compared to Rs 10,551 crore in the year-ago period, according to an exchange filing on Thursday.
LIC Q1 FY26 Highlights (Consolidated, YoY)
Net premium income up 4.71% to Rs 1,19,618 crore versus Rs 1,14,230 crore.
Net profit up 4.1% to Rs 10,985 crore versus Rs 10,551 crore.
Annual premium equivalent up 9.45% to Rs 12,652 crore versus Rs 11,560 crore. (NDTV Profit Estimate Rs 12,000 crore)
Value of new business rises 20.75% to Rs 1,944 crore versus Rs 1,610 crore. (NDTV Profit Estimate Rs 1,750 crore)
VNB margin at 15.4% versus 13.9%. (NDTV Profit Estimate Rs 14.6%)
The insurer saw an improvement in its 13th month persistency ratio, which rose to 75.63% compared to 68.62% in the previous quarter. However, the 61st month persistency ratio saw an uptick to 63.85% from 58.54% QoQ, reflecting a confidence in long-term policy retention.
The value of new business margin contracted to 15.4% from 18.75% in the previous quarter, suggesting a shift in product mix or pricing strategy that impacted profitability.
On the business growth front, group annualised premium equivalent grew robustly by 16.14% year-on-year to Rs 5,590 crore compared to Rs 4,813 crore, while individual APE witnessed a moderate growth of 4.65% to Rs 7,061 crore.
The individual APE product mix also shifted, with the share of participating and linked products declining to 69.66% from 76.06%, while the share of non-par products increased to 30.34% from 23.94%, indicating a move towards higher-margin, non-par offerings.
Concall Highlights
The company expressed confidence in strong business growth, with APE expected to improve substantially during the October to March period. The insurer's strategic focus remains on enhancing both VNB margins and overall volumes.
The management highlighted that increased emphasis on the non-par business will support margin expansion going forward, while ULIP continues to contribute meaningfully to volumes and the absolute VNB figure. The company is consciously working to sustain its current performance levels and deliver consistent results.
Before the financial results were declared, shares of LIC closed 0.81% lower at Rs 885.45 apiece on the BSE. The domestic benchmarks Sensex and Nifty 50 snapped a two-day losing streak today to settle higher.
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