LIC Q1 FY26 Results: Net Profit Rises 5% to ₹10,987 Crore, Asset Quality Improves

India’s largest life insurer, Life Insurance Corporation of India (LIC), kicked off FY26 with a steady performance. In its Q1 results for FY26, LIC reported a 5% year-on-year increase in net profit, reaching ₹10,987 crore, compared to ₹10,461 crore in the same quarter last year. The growth came despite a slowdown in new policy sales, reflecting LIC’s strong base of renewals and improved financial discipline.

Premium Income and Policy Mix

LIC’s net premium income also increased by 5%, rising from ₹1.14 lakh crore in Q1 FY25 to ₹1.19 lakh crore in the current quarter. While new policy sales were subdued due to regulatory changes introduced in October 2024—which reduced surrender charges for early policy exits—strong renewal premiums helped maintain income stability.

Additionally, LIC’s individual business non-par APE (Annualised Premium Equivalent) surged 32.6% to ₹2,142 crore, indicating increased demand for non-participating policies, which don’t share profits with policyholders but offer guaranteed benefits.

Improved Financial Health and Asset Quality

LIC’s financial stability has improved significantly,

Solvency ratio climbed to 2.17%, up from 1.99% a year ago, and 2.11% in the previous quarter. This key metric reflects LIC’s enhanced ability to meet long-term obligations.

• Gross NPAs declined by 21% year-on-year to ₹8,436.5 crore.
• Net NPAs plummeted by 36%, down to just ₹4 crore.
• Gross NPA ratio improved from 1.95% to 1.42% over the year.
• These improvements signal better risk management and stronger underwriting standards in LIC’s investment portfolio.

Strong AUM and Market Position

LIC’s Assets Under Management (AUM) grew by 6.47% YoY, reaching ₹57.05 lakh crore. This cements its status as one of the largest institutional investors in the country.

The insurer also reported,

• Market share of 38.76% in individual business
• Market share of 76.54% in group business for the quarter ending June 30, 2025
• This dominance reflects LIC’s deep penetration in both retail and corporate insurance segments.