LIC India Share Price Hits 11-Week High Following Q3 FY26 Results

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LIC India Share Price Hits 11-Week High Following Q3 FY26 Results

he state-owned insurer reported a 16.68 per cent year-on-year rise in Profit After Tax (PAT) to Rs 33,998 crore, compared with Rs 29,138 crore in the corresponding period last year.

Life Insurance Corporation of India (LIC) delivered a strong operational performance in Q3 FY26, boosting investor confidence and driving its stock to an 11-week high. Shares surged nearly 8 per cent to touch around Rs 907 on the NSE following the announcement of its December quarter results.

The state-owned insurer reported a 16.68 per cent year-on-year rise in Profit After Tax (PAT) to Rs 33,998 crore, compared with Rs 29,138 crore in the corresponding period last year. This robust performance reflects healthy premium growth, improving margins, disciplined cost management, and a strategic shift toward higher-margin non-participating (Non-Par) products.

Steady Premium Growth Anchors Financial Performance

During the first nine months of FY26, LIC maintained momentum across key business metrics. Total premium income rose 9.02 per cent year-on-year to Rs 3,71,293 crore, driven by balanced growth in both group and individual segments. Group business premiums increased 13.56 per cent to Rs 1,35,302 crore, while individual new business premiums grew 5.89 per cent to Rs 44,941 crore.

A significant highlight was the 15.88 per cent growth in Annualised Premium Equivalent (APE) to Rs 44,007 crore, reflecting improving ticket sizes and enhanced product mix quality. Although individual policies sold declined marginally by 0.40 per cent to 11.66 crore, renewal premiums remained strong, rising 6.75 per cent to Rs 1,91,050 crore, underscoring the stability of LIC’s long-term book.

Strategic Shift to Non-Par Products Boosts Margins

One of the most notable aspects of LIC’s 9M FY26 performance is its successful transition toward Non-Par products, which offer higher and more predictable margins. Non-Par APE in individual business surged 47.44 per cent year-on-year to Rs 10,045 crore. Consequently, the share of Non-Par products in individual APE increased sharply to 36.46 per cent from 27.68 per cent in the previous year.

This strategic shift contributed to a 27.96 per cent rise in the Value of New Business (VNB) to Rs 8,288 crore. Net VNB margin improved by 170 basis points to 18.8 per cent, reflecting enhanced profitability per policy.

Market Leadership Remains Strong

LIC continues to dominate India’s life insurance market. As of 31 December 2025, it held a 57.07 per cent market share in First Year Premium Income (FYPI). The Corporation’s strength is particularly pronounced in group insurance, commanding a 71.36 per cent market share, while maintaining a solid 35.84 per cent share in the individual segment.

Assets Under Management (AUM) grew 8.01 per cent year-on-year to Rs 59.17 lakh crore, up from Rs 54.78 lakh crore in December 2024. The expanding asset base reinforces LIC’s balance-sheet strength and enhances long-term investment income potential.

Operational Efficiency and Solvency Strengthen

Operational efficiency improved significantly, with LIC’s overall expense ratio declining by 132 basis points to 11.65 per cent, reflecting tighter cost controls and scale efficiencies. The solvency ratio rose to 2.19 from 2.02 a year earlier, comfortably above regulatory requirements.

Asset quality also improved, with the gross non-performing asset (NPA) ratio for policyholders’ funds declining to 1.31 per cent in Q3 FY26 from 1.64 per cent in Q3 FY25, signaling prudent investment management. However, persistency ratios saw a slight dip, with the 13th-month persistency on a premium basis slipping to 75.75 per cent from 76.66 per cent in 9M FY25—an area management is expected to focus on going forward.

Outlook

LIC’s 9M FY26 performance highlights a business transitioning from sheer scale to sharper focus on profitability and value creation. Strong premium growth, expanding Non-Par mix, improving margins, and solid solvency position the Corporation well for sustainable long-term growth. With supportive policy measures, digital acceleration, and renewed market confidence, LIC is well poised to enhance both financial performance and shareholder value in the coming years.

Disclaimer: The article is for informational purposes only and not investment advice.