Summary
- Life Insurance Corporation of India (LIC) reported a 5% rise in first-quarter profit for the financial year 2026.
- Net profit rose to Rs 10,987 crore in Q1, compared to Rs 10,551 crore in the corresponding quarter last year.
- Net premium income increased nearly 5% year-on-year to Rs 1.19 lakh crore.
- The rise in profit was primarily driven by higher premiums from renewed policies, with renewal premium collections up 6%.
- LIC’s equity portfolio saw a 10% sequential increase to Rs 16.84 lakh crore, with major investments in companies such as Reliance Industries, Tata Consultancy Services, Infosys, and Hindustan Unilever.
- Management expenses have seen significant reductions in previous quarters, contributing to improved profitability.
- For the full fiscal year 2024-25, LIC posted an 18% increase in net profit to Rs 48,151 crore.
- Despite a slowdown in first-year premium income in recent quarters, renewal premiums have been a consistent growth driver.
- LIC maintained a strong market share with 57.05% overall in the Indian life insurance business, including 37.46% in individual business and 71.19% in group business.
The India’s Life Insurance Corporation (LIC) reported a 5% rise in net profit for the first quarter of FY26, reaching Rs 10,987 crore, driven primarily by higher renewal premiums which grew by about 6%. Despite some softness in new policy sales, strong renewal premium collections and disciplined cost management helped sustain profitability. LIC also increased its equity portfolio investments by 10%, focusing on major companies like Reliance Industries and Tata Consultancy Services. The insurer maintained its market leadership with an overall 57.05% market share, reflecting its continued strength and resilience in the Indian life insurance sector.
What Are the Latest Profit Figures for LIC in the First Quarter of FY26?
As reported by Moneycontrol, LIC posted a net profit of Rs 10,987 crore for the April-June quarter of 2025-26, marking a 5% year-on-year increase compared to Rs 10,551 crore during the same period last year. This profit rise was supported by a 5% growth in net premium income, which reached Rs 1.19 lakh crore.
Similar figures were highlighted by MarketScreener and Reuters, confirming that the insurer’s profit growth was mainly driven by higher premiums from renewed policies, with renewal premium collection growing by about 6%, supporting the overall premium income increase.
How Has LIC’s Premium Income Contributed to Profit Growth?
LIC’s net premium income for the quarter rose to Rs 1.19 trillion, boosted particularly by renewal premiums which climbed nearly 6%. This trend was crucial in offsetting a slowdown in first-year premium sales, a trend observed in recent quarters. The Economic Times detailed that individual premium income saw strong growth, with a 14.60% increase in June 2025 alone, outperforming private sector growth.
Renewal premiums have consistently been a backbone for LIC’s revenue, with the company’s first-year premium income showing some softness but offset by strong renewal collections. This dynamic has underlined LIC’s financial stability and contributed to a steady rise in quarterly profits.
What Did LIC’s Full Fiscal Year 2024-25 Results Reveal?
According to PTI via The Times of India, LIC recorded a robust net profit of Rs 48,151 crore for the full year ending March 31, 2025, representing an 18% increase over Rs 40,676 crore in FY24. The quarterly analysis also showed strong cost management with significant declines in management expenses by about 33%, aiding profitability.
Siddhartha Mohanty, LIC’s MD and CEO, remarked that the fiscal year was “both exciting and challenging,” with the need to redesign and relaunch products to meet regulatory changes while maintaining growth momentum.
How Has LIC Managed Its Investment Portfolio and Expenses?
As detailed by PL India, LIC significantly increased its equity portfolio investments by over Rs 25,000 crore during Q1FY26, reflecting a 10% sequential rise to Rs 16.84 lakh crore. Key investments included heavy stakes in Reliance Industries (Rs 3,841 crore), Tata Consultancy Services (Rs 2,888 crore), Infosys, and Hindustan Unilever, indicating a strategic tilt towards energy transition, telecom infrastructure, consumption, and digital services sectors.
Additionally, management expenses have been substantially reduced in recent quarters. For instance, in Q4 FY25, operational expenses dropped by over 33%, while net commission and employee remuneration expenses were also sharply curtailed, leading to enhanced net profitability.
What Is LIC’s Market Position and Overall Business Outlook?
LIC remains the market leader in India’s life insurance sector with an overall market share of 57.05%, including 37.46% in individual business and 71.19% in group business, according to official data released in May 2025.
The corporation’s ongoing focus on cost efficiency, product innovation amid regulatory shifts, and investment portfolio recalibration signals a positive outlook for continued growth and profitability in the coming quarters. Despite challenges in new business acquisition volumes, LIC’s strong renewal premium base and prudent management ensure sustainable financial health.
How Has LIC Performed Compared to Other Indian Companies in Q1 FY26?
Alongside LIC, several other large Indian firms also reported their Q1 FY26 financial results. Titan, known for brands like Tanishq and CaratLane, posted a notable first-quarter profit of Rs 10.91 billion, bolstered by steady jewelry demand. Companies like Kalyan Jewellers and Godrej Consumer Products posted varied performances amidst the quarter’s earnings season.
LIC's consistent profit growth coupled with expanding equity portfolio investments distinguishes it as a stable financial sector player within the broader corporate earnings landscape in India.
India’s Life Insurance Corporation continues to demonstrate resilience and growth through effective premium management, renewed policies, investment strategy, and cost control, maintaining its dominant position in the Indian life insurance market amidst evolving economic and regulatory environments.