LIC India Share Price Hit 11-Week High on Q3 FY26 Results

The state-owned insurer reported a 16.68% year-on-year rise in Profit After Tax (PAT) to ₹33,998 crore, compared with ₹29,138 crore in the corresponding period last year. The strong showing reflects healthy premium growth, improving margins, disciplined cost control, and a decisive strategic pivot toward higher-margin non-participating (Non-Par) products.

Steady Premium Growth Anchors Financial Performance

During 9M FY26, LIC maintained momentum across its core business metrics. Total premium income rose 9.02% YoY to ₹3,71,293 crore, supported by balanced growth in both group and individual segments. Group business premiums increased 13.56% to ₹1,35,302 crore, while individual new business premium grew 5.89% to ₹44,941 crore.

A key highlight was the 15.88% growth in Annualised Premium Equivalent (APE) to ₹44,007 crore, indicating improving ticket sizes and product mix quality. Although the number of individual policies sold saw a marginal 0.40% decline to 11.66 crore policies, renewal premiums remained resilient, rising 6.75% to ₹1,91,050 crore, reinforcing the stability of LIC’s long-term book.

Strategic Shift to Non-Par Products Lifts Margins

One of the most significant developments in LIC’s 9M FY26 performance has been its successful transition toward Non-Par products, which typically offer higher and more predictable margins.

Within the individual business, Non-Par APE surged 47.44% YoY to ₹10,045 crore. As a result, the share of Non-Par products in individual APE increased to 36.46%, up sharply from 27.68% in the same period last year. This strategic recalibration directly translated into value creation, with Value of New Business (VNB) rising 27.96% to ₹8,288 crore. Consequently, the Net VNB margin improved by 170 basis points to 18.8%, highlighting better profitability per policy written.

Market Leadership Remains Unchallenged

LIC continues to retain its commanding position in India’s life insurance market. As of December 31, 2025, the Corporation held an overall market share of 57.07% in First Year Premium Income (FYPI). Its dominance is particularly pronounced in group insurance, where it commands 71.36% market share, while maintaining a strong 35.84% share in the individual segment.

The insurer’s Assets Under Management (AUM) grew 8.01% YoY to ₹59.17 lakh crore, up from ₹54.78 lakh crore in December 2024. The expanding asset base not only reinforces LIC’s balance-sheet strength but also enhances its investment income potential over the long term.

Improved Efficiency and Strong Solvency Position

Operational efficiency improved notably during the period. LIC’s overall expense ratio declined by 132 basis points to 11.65%, reflecting tighter cost controls and better scale efficiencies. Financial resilience also strengthened, with the solvency ratio improving to 2.19, compared to 2.02 a year earlier, comfortably above regulatory requirements.

On asset quality, LIC reported continued improvement, with the gross NPA ratio for policyholders’ funds declining to 1.31% in Q3 FY26, from 1.64% in Q3 FY25, signaling prudent investment management.

However, persistency ratios saw a slight softening. The 13th-month persistency on a premium basis slipped to 75.75%, compared with 76.66% in 9M FY25, an area management is expected to focus on going forward.

Outlook

Overall, LIC’s 9M FY26 performance underscores a business in transition, moving from sheer scale to a sharper focus on profitability and value creation. The combination of strong premium growth, expanding Non-Par mix, improving margins, and solid solvency positions the Corporation well for sustainable long-term growth. With supportive policy measures, digital acceleration, and renewed market confidence, LIC appears poised to strengthen both its financial performance and shareholder value in the coming years.