Life Insurance Corporation of India has announced a 22.81% rise in standalone net profit for the June quarter, bolstered by increased premium income and a significant boost in the value of new business, ensuring its continued dominance in India’s competitive insurance market.
Life Insurance Corporation of India reported a 22.81% rise in standalone net profit for the June quarter to ₹13,492 crore, helped by stronger premium income and a sharp increase in value of new business, according to the company’s earnings release. Total premium income climbed 6.75% to ₹1,27,250 crore, underlining LIC’s continued scale in India’s crowded life insurance market.
Chief executive R. Doraiswamy said LIC kept its lead in both individual and group insurance despite intensifying competition. The insurer said first-year premium income gave it a 60.10% market share, while its share was 38.89% in individual business and 70.90% in group cover. LIC also said it sold 31,02,281 individual policies in the quarter, up 2.06% from a year earlier.
The company’s value of new business rose more than 61% to ₹3,136 crore, while the margin expanded to 22.90%, reflecting a richer product mix and broader distribution, the release said. Earlier quarterly reports had already pointed to LIC’s push into higher-margin non-participating policies and stronger group business as key profit drivers, with analysts noting that these lines are helping offset pressure elsewhere in the portfolio.
LIC said its solvency ratio improved to 2.42 from 2.17, and assets under management rose 4.10% to ₹59,39,384 crore. Its expense ratio edged up 16 basis points to 10.63%, while the yield on policyholders’ funds excluding unrealised gains eased to 8.28% from 8.45%. The figures suggest the insurer remains well capitalised even as returns and operating costs move in different directions.
Doraiswamy also flagged possible knock-on effects from geopolitical tension in West Asia, saying premium growth and annual premium equivalent sales were not as strong as expected and that products tied more closely to interest rates and market movements, such as unit-linked plans and annuities, could be affected. He said LIC will mark its 70th anniversary on September 1, 2026 with new products and initiatives.
On ownership, Doraiswamy said the government’s recent stake sale helped the insurer meet the Securities and Exchange Board of India’s minimum public shareholding requirement ahead of the May 2027 deadline. He added that with the state’s holding now at 90%, he did not expect another immediate offer for sale, and said the 2032 target to reduce the government’s stake to 75% leaves ample time for further decisions.
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