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LIC Q2FY26 margin improvement gains traction

Good premium growth, sound VNB margin expansion in LIC’s Q3FY26

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Good premium growth, sound VNB margin expansion in LIC’s Q3FY26

in Data Story, Market
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LIC Q2FY26 margin improvement gains traction
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Athira Sethu

Kochi, 7 Feb 2026

LIC delivered a strong Q3 FY26 performance, driven by sharp profit growth, healthy premium expansion, improved margins, and a clear shift toward higher-margin non-participating products. Despite stable policy volumes, the insurer strengthened profitability, balance-sheet resilience, and operating efficiency during the quarter and the nine-month period ended December 2025.

Profit Snapshot

MetricQ3 FY26YoY ChangeQoQ Change
Net Profit – Consolidated (₹ crore)12,930+17%+28%

Premium Growth

MetricQ3 FY26YoY Change
Net Premium Income – Consolidated (₹ crore)~1.26 lakh crore+17%

Business Mix (Key Growth Drivers)

SegmentQ3 FY26 (₹ crore)YoY Growth
First-Year Premium10,604.60+45.6%
Single Premium45,872.85+30.5%

Value Creation Metrics (9M FY26)

Metric9M FY26YoY Change
Value of New Business – VNB (₹ crore)8,288+28%
Net VNB Margin18.8%+170 bps

APE Mix (9M FY26)

CategoryAPE (₹ crore)Share
Total APE44,007100%
Individual Business27,55262.6%
Non-Par (Individual)10,04536.5%

Balance Sheet Strength

MetricDec 31, 2025YoY Change
Solvency Ratio2.19Improved
Assets Under Management (₹ lakh crore)59.16+8.0%

Efficiency Indicator

Metric9M FY269M FY25
Expense Ratio11.65%12.97%

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