Life Insurance Corporation of India (LIC) continues its upward trajectory, reporting a significant 17.46% year-on-year (YoY) increase in consolidated net profit for the third quarter of the 2025-26 financial year. The state-run insurance behemoth recorded a profit of ₹12,930.44 crore for the quarter ending December 31, 2025, supported by a sharp rise in premium income and strategic shifts in its product portfolio. LIC Q3 results reflect a resilient performance amidst evolving regulatory landscapes and shifting consumer preferences in the Indian insurance sector.
Strong Premium Growth Anchors Performance
The insurer’s net premium income witnessed a healthy growth of 17.76% YoY, reaching ₹1.26 lakh crore compared to ₹1.07 lakh crore in the corresponding quarter of the previous fiscal. This growth suggests that the corporation has successfully navigated market competition while maintaining its dominant position.
A standout figure in the latest filing is the performance of the first-year premium. LIC reported a massive 45.2% jump in this segment, with collections reaching ₹10,648.46 crore. This is a substantial leap from the ₹7,333.59 crore recorded in Q3FY25, signaling a strong influx of new policyholders and successful new business acquisition strategies.
Analyzing the Impact of LIC Q3 Results on Margins
Profitability metrics beyond the bottom line also showed marked improvement. The Value of New Business (VNB) margin, a critical indicator of the profitability of new policies sold, rose to 18.8% for the first nine months of FY26 (9MFY26). In the same period last year, this figure stood at 17.1%.
This expansion in margins is largely attributed to a strategic pivot toward “non-par” (non-participating) products. Unlike traditional policies where profits are shared with policyholders, non-par products offer fixed benefits, allowing the insurer to retain a higher share of the earnings. The non-par share within individual business increased to 36.46% on an Annualised Premium Equivalent (APE) basis, up from 27.68% a year ago.
The GST 2.0 Factor and Digital Evolution
R. Doraiswamy, CEO & MD of LIC, pointed toward a positive industry-wide reaction to government reforms. He specifically highlighted that the implementation of GST 2.0 has acted as a catalyst for growth. By streamlining tax processes and improving transparency, the new framework has allowed large players like LIC to optimize their operations and product delivery.
Parallelly, LIC has been aggressively investing in digital transformation. The rollout of advanced digital projects has improved customer onboarding and claim processing times. These technological upgrades are essential as the company aims for the national goal of ‘Insurance for All by 2047’.
Diversifying Channels: The Rise of Bima Sakhis and Banca
A major part of LIC’s strategy involves moving beyond its traditional dependence on individual male agents. The ‘Bima Sakhi Yojana’ has been instrumental in this shift, focusing on recruiting women agents to penetrate deeper into rural markets. As of December 31, 2025, approximately 2.97 lakh women have been appointed under this scheme.
Furthermore, the “Banca” (bancassurance) and alternate channels—such as partnerships with banks and online platforms—are contributing a larger share to the overall individual new business premium mix. This diversification reduces the risk associated with relying on a single distribution channel and broadens the company’s reach across different socio-economic strata.
Stock Market Reaction and Valuation
The market anticipated a positive set of numbers, as shares of LIC closed 0.56% higher at ₹840 apiece on the National Stock Exchange (NSE) on Thursday, just before the official earnings release. With a total market capitalization of ₹5.31 lakh crore, LIC remains one of the most significant entities in the Indian financial ecosystem.
Investors are closely monitoring how the company balances its massive traditional portfolio with its newer, high-margin products. The consistent improvement in VNB margins and the surge in first-year premiums suggest that the “sleeping giant” of the Indian markets is successfully adapting to a more competitive, private-sector-heavy environment.
Summary of Key Financials (Q3FY26)
| Parameter | Q3FY26 (₹ Crore) | Q3FY25 (₹ Crore) | YoY Change (%) |
| Net Profit | 12,930.44 | 11,008.65 | 17.46% |
| Net Premium Income | 1,26,000 | 1,07,000 | 17.76% |
| First-Year Premium | 10,648.46 | 7,333.59 | 45.2% |
| VNB Margin (9M) | 18.8% | 17.1% | +170 bps |
Looking Ahead to 2047
The third-quarter performance reinforces LIC’s role as a cornerstone of the Indian economy. By focusing on rural outreach through Bima Sakhis and increasing the share of high-margin non-participating products, the insurer is aligning itself with both social objectives and shareholder interests. As the industry moves toward the 2047 goal of universal insurance coverage, LIC’s ability to sustain this double-digit growth will be vital.
To learn more, follow Shabdsanchi’s social media pages today and stay updated.
- Facebook: shabdsanchi
- Instagram: shabdsanchiofficial
- YouTube: @shabd_sanchi
- Twitter: shabdsanchi
