LIC Reports Strong Q1 Results, Shifts Focus to Non-Par Products and Digital Growth
LIC of India reported a 5.02% increase in Q1 profit after tax to ₹10,986.00 crore. Total premium income grew by 4.77% to ₹1,19,200.00 crore. The insurer's strategic shift towards non-participating products showed significant growth, with their share in individual business rising to 30.34%. Value of New Business grew by 20.75% to ₹1,944.00 crore, with net VNB margin increasing to 15.4%. LIC maintained market leadership with a 63.51% share in first-year premium income. Assets Under Management grew by 6.47% to ₹57,05,341.00 crore. The company is focusing on digital expansion and operational efficiency, with plans to launch new products and increase insurance penetration.

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LIC of India , the country's largest insurer, has reported robust financial results for the first quarter, while outlining its strategic pivot towards high-margin non-participating products and digital expansion initiatives.
Financial Highlights
LIC's profit after tax (PAT) for Q1 increased by 5.02% year-on-year to ₹10,986.00 crore, up from ₹10,461.00 crore in the same quarter last year. The insurer's total premium income grew by 4.77% to ₹1,19,200.00 crore, compared to ₹1,13,770.00 crore in the corresponding quarter.
Strategic Shift to Non-Par Products
A key highlight of LIC's performance was the significant growth in its non-participating (non-par) product segment. The share of non-par products within the individual business, on an Annualized Premium Equivalent (APE) basis, increased to 30.34% in Q1, up from 23.94% in the same quarter last year. This represents a substantial growth of 32.63% in non-par APE, rising from ₹1,615.00 crore to ₹2,142.00 crore.
Value of New Business and Margin Improvement
The insurer's focus on high-margin products has yielded positive results. The Value of New Business (VNB) for Q1 grew by 20.75% to ₹1,944.00 crore, compared to ₹1,610.00 crore in the same period last year. Notably, the net VNB margin increased by 150 basis points to 15.4%, up from 13.9% in the corresponding quarter.
Digital Expansion and Operational Efficiency
LIC's strategic pivot also includes a strong emphasis on digital expansion. While specific details of digital initiatives were not provided, the company's overall expense ratio decreased by 140 basis points to 10.47%, down from 11.87% in the same quarter last year, indicating improved operational efficiency.
Market Leadership and Asset Growth
Despite intense competition, LIC maintained its market leadership with a 63.51% share in overall first-year premium income. The corporation's Assets Under Management (AUM) grew by 6.47% year-on-year to ₹57,05,341.00 crore as of June 30.
Management Commentary
R Doraiswamy, CEO & MD of LIC, stated, "Key elements of our strategy like increase in Non Par share in Individual business, increase in VNB margin, increase in Banca share are fully on track." He also highlighted the success of the 'Bima Sakhi Yojana', which has appointed nearly 2 lakh women agents who sold over 3.26 lakh policies in Q1.
Future Outlook
Looking ahead, LIC plans to launch new products to meet evolving customer needs and further enhance its customer outreach. The insurer remains committed to working with regulatory authorities and various state and district-level insurance committees to increase life insurance penetration in India.
As LIC continues its strategic transformation, the focus on high-margin non-par products, digital initiatives, and operational efficiency is expected to drive long-term value creation for the insurance giant.
Historical Stock Returns for LIC of India
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
-0.87% | -1.12% | -6.22% | +8.44% | -21.23% | +1.11% |