India’s largest life insurer, Life Insurance Corporation of India (LIC), reported a 5% rise in Q1 FY26 net profit to ₹10,987 crore. Premium income surged, NPAs reduced, and solvency ratio increased amidst regulatory changes.
Premium Income and Policy Mix
- Net premium income increased by 5% to ₹1.19 lakh crore.
- New policy sales were impacted by regulatory changes, but strong renewal premiums maintained income stability.
- LIC’s non-par APE surged by 32.6% to ₹2,142 crore.
Improved Financial Health and Asset Quality
- Solvency ratio climbed to 2.17% from 1.99% a year ago.
- Gross NPAs decreased by 21% to ₹8,436.5 crore.
- Net NPAs plummeted by 36% to ₹4 crore.
Strong AUM and Market Position
- LIC’s Assets Under Management (AUM) grew by 6.47% YoY to ₹57.05 lakh crore.
- Market share of 38.76% in individual business and 76.54% in group business for the quarter ending June 30, 2025.
Key Takeaways for Competitive Exams:
- LIC’s Q1 FY26 net profit rose by 5% to ₹10,987 crore despite a slowdown in new policy sales.
- The insurer’s solvency ratio improved to 2.17%, showcasing enhanced financial stability.
- LIC’s AUM increased by 6.47% YoY, solidifying its position as a leading institutional investor.
