State-owned life insurer Life Insurance Corporation of India (LIC) reported a 17 per cent jump in net profit at Rs 12,958 crore in the third quarter ended December 2025. The country’s biggest insurer earned a net profit of Rs 11,056 crore in the year-ago period.
During the quarter, the net premium income of the insurer rose to Rs 1,25,613 crore from Rs 1,06,891 crore in the same period a year ago. The total income also improved to Rs 2,33,984 crore in the latest December quarter compared to Rs 2,01,994 crore in the same period a year ago.
The insurer paid a net commission of Rs 6,011 crore as against Rs 5,966 crore in the third quarter of the previous financial year. As regards new business, LIC garnered first-year premiums of Rs 10,605 crore as compared to Rs 7,285 crore in the same quarter a year ago.
LIC Q3 business growth
Life Insurance Corporation reported higher demand for its products in the third quarter, as the government’s decision to eliminate the 18% tax on individual life insurance products made policies more affordable.
LIC’s annualised premium equivalent sales, a key metric that conveys the annualised total value of all single and recurring premium policies, rose 50.5% to Rs 14,973 crore for the quarter. LIC benefits from strong sales through its extensive agency network across the country.
The insurer’s value of new business, or expected profit from new policies, increased 65% to Rs 3,177 crore for the quarter.
LIC Q3 margins
LIC has also been focusing on increasing its share of high-margin policies to cushion its margins. An increase in ticket sizes across multiple products over the last few quarters has helped shore up the company’s margins.
Its VNB margins from new business expanded to 18.8% for the nine months ended December from 17.6% as of September-end and 17.1% a year earlier. Solvency ratio, the measure of an insurer’s ability to meet its long-term financial obligations, rose to 2.19 during the quarter from 2.02 a year earlier and 2.13 in the prior quarter