R Doraiswamy, CEO & MD, Life Insurance Corporation
“We will wait for the proposed Insurance Bill and depending upon new changes in the Bill , our board and shareholders will take a call whether to enter into Health Insurance Business and how to do it. The Health insurance market is undergoing changes and need to be evaluated before we decide to enter the sector. We will wait for the proposed Insurance Bill to take any decisions on Health Insurance. We haven’t also decided about any particular company in which we can take stake or how much stake to pick up. if the Insurance Bill allows composite license, the corporation may do the Health Insurance directly and will not pick up stakes in another company. , ” said R Doraiswamy, CEO and MD, LIC
Mumbai: State owned Life Insurance Corporation of India(LIC) reported a 5% rise in first-quarter profit on Thursday, helped by higher premium from renewed policies.
New profit for the life insurance behemoth rose to Rs 10,987 crore for the quarter ended June 30 from Rs 10,461 crore a year earlier.
The insurer’s net premium income rose nearly 5% to Rs1, 19, 200, helped by a 6% rise in its renewal premium collection. The corporation’s total premium income for quarter ended June 30th, 2025 was Rs. 1,19,200 crore as compared to Rs. 1,13,770 crore for the quarter ended June 30th 2024, registering a growth of 4.77%.
In a change of plans, the corporation has decided to wait for the proposed Insurance Bill to take a final decision on its plans to enter into Health insurance business.
“Depending upon new changes in the proposed Insurance Bill, our board and shareholders will take a call whether to enter into Health Insurance Business and how to do it. The Health insurance market is undergoing changes and need to be evaluated before we decide to enter the sector. We will wait for the proposed Insurance Bill to take any decisions on Health Insurance. We haven’t also decided about any particular company in which we can take stake or how much stake to pick up, ” said R Doraiswamy, CEO and MD , LIC while announcing the results, the first one after he has become MD&CEO of the corporation.
According to the new LIC chief, if the Insurance Bill allows composite license, the corporation may do the Health Insurance directly and will not pick us stakes in another company.
On LIC’s performance in Q1FY 26 , Doraiswamy said said,“During the first quarter of this financial year, our overall market share by First Year Premium Income was 63.51% and we maintained our leadership in both Individual and Group Business. 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. The share of Non Par products within Individual segment, on an APE basis, has increased to 30.34% in the first quarter of FY26 as compared to 23.94% for the same quarter last year.”
LIC’s VNB(value of new business) margin has increased by 150 bps to 15.4% on year-on year (Y-O-Y) basis, while our expense ratio has declined by 140 bps to 10.47% in this quarter. LIC’s channel mix diversification strategy is visible with the increased share of bancassurance and alternate channels, he said.
The Value of New Business (VNB) for the quarter ended June 30th, 2025 was Rs. 1,944 crore as compared to Rs. 1,610 crore for the quarter ended June 30th, 2024, registering a growth of 20.75%. The net VNB margin for the quarter ended June 30th, 2025 increased by 150 bps to 15.4% as compared to 13.9% for the quarter ended June 30th, 2024.
The Solvency Ratio as on June 30th, 2025 increased to 2.17 as against 1.99 on June 30th, 2024.
LIC’s new policy sales were subdued due to new regulations implemented earlier in October, which reduced the charges policyholders paid if they closed their policies before maturity. However, renewals bolstered its earnings.
The total Individual Business premium for the quarter ended June 30th, 2025.increased to Rs. 71,474 crore from Rs. 67,192 crore for the comparable period of previous year, showing an increase of 6.37%. The Group Business total premium income for quarter ended June 30th, 2025 was Rs. 47,726 crores as compared to Rs 46,578 crore for the quarter ended June 30th 2024, showing an increase of 2.46%.
In terms of market share measured by First Year Premium Income (FYPI) (as per IRDAI), LIC continues to be the market leader in Indian life insurance business with overall market share of 63.51%. For the quarter ended June 30th, 2025, LIC had a market share of 38.76% in Individual business and 76.54% in the Group business.
Solvency ratio, the measure of an insurer’s ability to meet its long-term financial obligations, rose to 2.17 during the quarter from 1.99 a year earlier and 2.11 in the prior quarter.
The Assets Under Management (AUM) increased to Rs. 57,05,341 crore as on June 30th 2025 as compared to Rs. 53,58,781 crore on June 30th, 2024 registering an increase of 6.47% year on year.
The Overall Expense Ratio for the quarter ended June 30th, 2025 was 10.47% as compared to 11.87% for the quarter ended June 30th 2024, registering a decrease of 140 bps. The Yield on Investments on policyholders funds excluding unrealized gains was 8.45% for the quarter ended June 30th, 2025 as against 8.54% for quarter ended June 30th, 2024
As at 30th June 2025, more than 1.99 lakh women have been appointed as Bima Sakhis who have sold more than 3.26 lakh policies during the first quarter of FY26. We look forward to working with the regulatory authorities and various State and District Level Insurance Committees to further increase life insurance penetration in our country. We are focused on launching new products to meet customer needs and further enhancing our customer outreach.