Key Business and Financial Highlights (Q1 FY27 vs Q1 FY26)

Market Position:

  • Market share by first year premium income: 60.10% (vs 63.51%)
  • Individual business market share: 38.89% (vs 38.76%)
  • Group business market share: 70.90% (vs 76.54%)

Premium Income:

  • Total premium income: ₹127,250 crore (growth of 6.75% YoY)
  • Individual new business premium: ₹14,351 crore (growth of 14.48% YoY)
  • Individual renewal premium: ₹61,065 crore (growth of 3.61% YoY)
  • Total individual premium: ₹75,416 crore (growth of 5.52% YoY)
  • Group business total premium: ₹51,834 crore (growth of 8.61% YoY)
  • Group new business premium: ₹51,229 crore (vs ₹46,907 crore)

Annualized Premium Equivalent (APE):

  • Total APE: ₹13,692 crore (growth of 8.22% YoY)
  • Individual APE: ₹7,532 crore (55.01% of total)
  • Group APE: ₹6,160 crore (44.99% of total)
  • Individual non-par share of APE: 32.49% (vs 30.34%)
  • Individual par APE: ₹5,085 crore (67.51%)
  • Individual non-par APE: ₹2,447 crore (32.49%)

Profitability:

  • Profit after tax: ₹13,492 crore (growth of 22.81% YoY)
  • Net VNB: ₹3,136 crore (growth of 61.32% YoY from ₹1,944 crore)
  • Net VNB margin: 22.9% (improvement of 750 bps from 15.4%)

Solvency and Assets:

  • Solvency ratio: 2.42 (vs 2.17)
  • Assets under management: ₹59,39,384.39 crore (growth of 4.1% YoY from ₹57,05,341.44 crore)

Operational Metrics

Product Portfolio:

  • 59 products available as of June 30, 2026 (excluding PMJJBY)
  • 37 individual products, 13 group products, 1 common product, 7 individual riders, 1 group rider
  • New products launched since April 2026: LIC's New Jeevan Sathi single premium and limited premium
  • Product withdrawn: LIC's Nav Jeevan Shree single premium (close-ended plan)

Sales Performance:

  • New policies sold: 31,02,281 (increase of 2.06% YoY)
  • Agency force policies sold: 30,55,909 (98.51% of total policies)
  • Agency channel contribution to new business premium: 93.07%

Agent Network:

  • Total agents: 14,45,692 (decrease of 2.73% YoY)
  • Market share by number of agents: 43.69% (vs 47.11%)

Channel Performance:

  • Bancassurance and alternate channels new business premium: ₹907.14 crore (growth of 5.25% YoY)
  • Bank channel premium: ₹483.39 crore (decrease of 8.62% YoY)
  • Alternate channels premium: ₹423.75 crore (growth of 27.27% YoY)
  • Channel contribution to individual new business premium: 6.34% (vs 6.89%)

Expense Ratio:

  • Overall expense ratio: 10.63% (increase of 16 bps from 10.47%)

Persistency Ratios (Premium Basis):

  • 13th month: 75.33% (vs 75.63%)
  • 25th month: 69.84% (vs 71.53%)
  • 37th month: 67.50% (vs 67.17%)
  • 49th month: 64.04% (vs 63.45%)
  • 61st month: 61.12% (vs 63.85%)

Persistency Ratios (Number of Policies Basis):

  • 13th month: 66.45% (vs 64.35%)
  • 25th month: 58.07% (vs 60.15%)
  • 37th month: 56.14% (vs 54.23%)
  • 49th month: 51.27% (vs 50.79%)
  • 61st month: 48.74% (vs 51.12%)

Digital Initiatives

Ananda Application:

  • Policies completed: 436,925 (growth of 25.56% YoY)
  • Active agents growth: 16.29% YoY

New Mobile Applications (Launched April 2026):

  • MyLIC app: Comprehensive digital servicing for customers
  • Super Sales Saathi app: Digital workspace for agents and intermediaries with real-time access to customer information, commission details, and business performance
  • Part of LIC's Digital Innovation and Value Enhancement (DIVE) initiative

Claims Processing

  • Total individual claims processed: 37,27,812
  • Maturity and survival benefit claims: 35,35,876
  • Maturity claim amount: ₹57,099 crore (increase of 12.88% YoY)
  • Death claim amount: ₹5,934 crore (increase of 0.97% YoY)
  • Maturity claims number: decreased 10.94% YoY
  • Death claims number: decreased 3.09% YoY

Bima Sakhi Initiative

  • Total Bima Sakhis appointed: 2.87 lakh women
  • Policies sold: 4.52 lakh
  • New business premium generated: ₹656.91 crore
  • Gram panchayat coverage: 151,620 out of 244,876 (62% coverage)

Capital Structure Update

  • Government of India sold 6.5% stake via OFS
  • Public float increased to 10%, achieving minimum public shareholding compliance

Management Commentary and Outlook

VNB Margin Drivers:

  • 650 bps improvement from business mix changes (growth in individual non-par savings: 59.24%, protection business: 43.59%)
  • 290 bps positive impact from assumption changes (RFR and persistency experience alignment)
  • 190 bps negative impact from expense assumptions (GST input tax credit loss)

Business Strategy:

  • Focus on margin-accretive business lines (non-par savings and protection)
  • Expect ULIP business recovery with market normalization
  • Continued focus on improving efficiency and expense ratio reduction
  • Targeting mid-20s VNB margin by year-end

Channel Strategy:

  • Weeding out non-serious agents from agency force
  • Focus on rural expansion through Bima Sakhi initiative
  • Expect bancassurance recovery in subsequent quarters after delayed start

Product Strategy:

  • Minimum sum assured increased from ₹1 lakh to ₹2 lakh (since October 2024)
  • This has increased average ticket size and improved margins
  • Focus on protection business growth through agency channel

Analyst Q&A Highlights

ULIP Business:

  • Current reduction due to market volatility and low investor confidence
  • Expected to recover with market normalization
  • Not expected to cannibalize non-par business

Expense Impact:

  • GST input tax credit loss impact to continue through Q2 FY27 when comparing YoY
  • Expected to normalize as volume growth offsets expense impact

IDBI Bank Stake:

  • Held in policyholder funds (pre-IPO investment)
  • Awaiting stake sale process

Protection Business:

  • Growing at 40%+ YoY
  • Primarily driven by agency channel
  • Focus on increasing protection share in bancassurance

Solvency Strategy:

  • Current 2.42% ratio is pre-dividend
  • Post-dividend would be approximately 2.32%
  • Will support growth in protection business and liability underwriting

Upcoming Milestone

  • LIC to complete 70 years of existence on September 1, 2026