LIC Reports Robust Q3FY26 Performance with 17% Profit Growth
State-run Life Insurance Corporation of India (LIC) has announced impressive financial results for the December quarter, showcasing significant year-on-year growth. The insurance behemoth reported a consolidated net profit of Rs 12,930 crore for Q3FY26, marking a substantial 17% increase compared to Rs 11,008 crore in the same period last year.
Strong Premium Income and Sequential Profit Growth
Net premium income for the quarter stood at Rs 1.26 lakh crore, reflecting a 17% rise from Rs 1.07 lakh crore in Q3 of the previous financial year. On a sequential basis, profit after tax (PAT) demonstrated even stronger momentum, climbing 28% from Rs 10,098 crore reported in Q2FY26. However, net premium income saw a marginal decline of 0.7% quarter-on-quarter.
Individual Business Performance and Policy Sales
In the individual business segment, LIC sold 1,16,63,856 policies during the nine-month period ended December 31, 2025. While this represents a slight decline of 0.40% compared to 1,17,10,505 policies sold in the same period last fiscal, the overall business metrics remain robust.
On an Annualised Premium Equivalent (APE) basis, total premium reached Rs 44,007 crore for 9MFY26. The distribution shows that 62.61% or Rs 27,552 crore originated from Individual Business, while 37.39% or Rs 16,455 crore came from Group Business.
Product Mix and Business Growth
Within Individual Business, Par products accounted for 63.54% of APE at Rs 17,507 crore, while Non-Par products contributed 36.46% at Rs 10,045 crore. Notably, Individual Non-Par APE surged to Rs 10,045 crore during the nine months ended December 31, 2025, compared with Rs 6,813 crore in the year-ago period, registering an impressive growth of 47.44%.
Value of New Business and Margin Improvement
The Value of New Business (VNB) for the nine months ended December 31, 2025 stood at Rs 8,288 crore, compared with Rs 6,477 crore in the corresponding period last year, representing a growth of 27.96%. The Net VNB margin showed significant improvement, increasing by 170 basis points to 18.8% during the period, compared with 17.1% a year ago.
Financial Strength and Asset Management
LIC's financial stability metrics demonstrated positive trends. The solvency ratio improved to 2.19 as on December 31, 2025, compared with 2.02 as on December 31, 2024. Assets Under Management (AUM) rose to Rs 59,16,680 crore as on December 31, 2025, compared with Rs 54,77,651 crore a year earlier, registering an increase of 8.01% year-on-year.
Operational Efficiency Gains
The overall expense ratio for the nine months ended December 31, 2025 declined by 132 basis points to 11.65%, compared with 12.97% in the corresponding period of the previous year. This reduction indicates improved operational efficiency and cost management within the organization.
These results underscore LIC's dominant position in the Indian insurance sector and its ability to deliver consistent financial performance despite market challenges. The corporation's strategic focus on product diversification and operational efficiency appears to be yielding positive outcomes across key business metrics.
