LIC Q1 Results: Profit Rises to ₹13,492 Cr; Govt Unlikely to Dilute Stake Further

Life Insurance Corporation of India (LIC) reported a 23% year-on-year increase in net profit to ₹13,492 crore for the quarter ended June 30, aided by higher premium collections and improved new business performance, the insurer said in a regulatory filing.

The state-owned insurer had posted a net profit of ₹10,987 crore in the corresponding quarter last year. Total income rose to ₹2,37,848 crore from ₹2,22,864 crore a year earlier.

According to LIC, total premium income increased 6.75% to ₹1,27,250 crore during the quarter from ₹1,19,200 crore in the year-ago period.

"What gives us even more happiness is that our Value of New Business (VNB) has grown by 61% plus and our VNB margin has expanded by 7.5% to 22.90% this year. This is a direct outcome of our product diversification and distribution strategy," said R Doraiswamy, CEO and MD of LIC.

Government Stake Sale Unlikely

Addressing questions on the government's disinvestment plans, Doraiswamy said that the government is unlikely to go in for a public offer in the next 18-24 months as "LIC has time till 2032 for meeting the Minimum Public Shareholding (MPS) norm of Sebi."

LIC has already achieved the 10% public shareholding requirement well ahead of the May 2027 deadline under the special dispensation and expressed confidence that higher public participation would support the company's share price, he added.

"I want to welcome the new shareholders through the OFS into the LIC shareholder family and also thank the existing shareholders who have participated in the OFS for their continued faith in LIC," Doraiswamy said while referring to the recent 6.5% offer for sale.

Premium Segments, Solvency and Future Plans

According to the company, first-year premium income increased to ₹9,217 crore from ₹7,525 crore, while renewal premiums rose to ₹61,833 crore from ₹59,885 crore.

Single premium collections also climbed to ₹56,369 crore from ₹51,923 crore.

Total expenses stood at ₹2,25,573 crore, compared with ₹2,11,928 crore a year earlier, while the solvency ratio improved to 2.42 times from 2.17 times. Assets under management (AUM) grew 4.10% year-on-year to ₹59,39,384 crore.

LIC said it sold 31,02,281 individual policies during the quarter, up 2.06% from a year ago. Doraiswamy also said the insurer is preparing for the proposed Risk Based Capital framework, remains open to acquiring a strategic stake in a fintech company, and is reviewing its real estate portfolio to improve returns.

He added that the West Asia conflict had only a limited impact on business as Annualised Premium Equivalent (APE) remained relatively modest.