- LIC reported a Q1 net profit of ₹13,492 crore, marking a 23% increase driven by higher premiums and new business.
- The government successfully offloaded 6.5% of its stake in LIC, meeting the SEBI mandate for 10% minimum public shareholding ahead of the May 2027 deadline.
- With the government stake now at 90%, there is no immediate pressure to sell further shares, and no new offers are expected in the near future.
- LIC is set to celebrate its 70th anniversary on September 1, 2026, with plans for innovative product launches.
- Regarding the impact of the West Asia crisis, Mr. Doraiswamy noted that while performance numbers have improved, the growth in premium or APE is not as expected, indicating potential impacts on business lines related to interest rates or markets.
- Mr. Doraiswamy expressed that he does not expect any new offers for stake sale before the 2032 deadline to reduce the government's stake to 75%.
Life Insurance Corporation of India (LIC) reported a 22.81% year-on-year increase in standalone net profit for the June quarter, reaching ₹13,492 crore. This growth was attributed to a 6.75% rise in total premium income, amounting to ₹1,27,250 crore, and a significant surge in the value of new business (VNB), which grew by 61% to ₹3,136 crore.
CEO R. Doraiswamy emphasized that despite rising competition, LIC maintained a strong market presence, holding a 60.10% market share in first-year premium income. The VNB margin also expanded to 22.90%, reflecting effective product diversification and distribution strategies.
The insurer's solvency ratio improved to 2.42%, while assets under management increased by 4.10% to ₹59,39,384 crore. However, the overall expense ratio rose by 16 basis points to 10.63%.
In a strategic move, the government reduced its stake in LIC to 90% after a 6.5% offer for sale, fulfilling the Securities and Exchange Board of India mandate for a minimum public shareholding of 10% ahead of the May 2027 deadline. Doraiswamy noted that there is no immediate pressure for further stake sales, as the government has until 2032 to reduce its stake to 75%.6
Looking ahead, LIC plans to celebrate its 70th anniversary in 2026 with innovative product launches and initiatives, despite potential impacts from external factors like the West Asia crisis on premium growth.45
“The government's stake sale helped meet SEBI's 10% minimum public shareholding mandate ahead of the May 2027 deadline, with no new offers expected soon. LIC plans innovative product launches for its 70th anniversary on September 1, 2026, while management flags potential West Asia crisis impact on ULIPs and annuity.”
