LIC Q1 Profit Soars 23% to ₹13,492 Cr, VNB Up 61%

Life Insurance Corporation of India (LIC) reported a robust financial performance for the first quarter of the fiscal year, with its net profit increasing by 23% year-on-year to ₹13,492 crore.

This significant growth, up from ₹10,987 crore in the same period last year, was driven by healthy premium income, improved new business profitability, and higher investment income.

Key Q1 Financials

• Net Profit: 23% Y-o-Y increase, reaching ₹13,492 crore.
• Net Premium Income: Rose 7% Y-o-Y, totaling ₹1.27 lakh crore.
• Other Income: Jumped to ₹635 crore from ₹130 crore a year ago.
• Value of New Business (VNB): Surged 61% Y-o-Y to ₹3,136 crore.
• VNB Margin: Expanded by 750 basis points, from 15.4% to 22.9%.
• First-Year Premium Income: Grew 22% Y-o-Y, amounting to ₹9,217 crore.

The notable expansion in VNB margin indicates an improved product mix and enhanced profitability from newly written business during the quarter.

Balance Sheet and Share Performance

LIC further strengthened its balance sheet, with the solvency ratio improving to 2.42 from 2.17 a year earlier, comfortably exceeding regulatory requirements.

Policy retention metrics showed mixed results; the 13th-month persistency ratio slightly decreased by 50 basis points to 70.4%, while the longer-term 61st-month persistency ratio improved by 300 basis points to 61.3%.

• LIC Shares (Thursday Close): Fell 1.39% to ₹387.55 per share.
• Weekly Performance: Down 8.35% in one week.
• Monthly Performance: Declined 9.68% in one month.

Despite the strong Q1 results, which were announced after market close, LIC shares closed lower on Thursday, reflecting recent downward trends over the past week and month.