Mumbai (Maharashtra) [India], August 6 (ANI): Life Insurance Corporation of India (LIC) reported a sharp improvement in the profitability of its new business during the first quarter of FY27, with its Value of New Business (VNB) rising 61.32 per cent year-on-year to Rs 3,136 crore, while the net VNB margin expanded by 750 basis points to 22.9 per cent. The state-owned insurer also posted a 22.81 per cent increase in profit after tax (PAT) to Rs 13,492 crore for the April-June quarter.

LIC's total premium income grew 6.75 per cent year-on-year to Rs 1,27,250 crore during the quarter, supported by growth in both individual and group businesses. Individual new business premium rose 14.48 per cent to Rs 14,351 crore, while group business premium increased 8.61 per cent to Rs 51,834 crore.

The insurer's overall Annualised Premium Equivalent (APE) increased 8.22 per cent to Rs 13,692 crore. Individual business APE grew 6.67 per cent, while group business APE rose 10.20 per cent during the quarter.

LIC continued to improve its product mix, with the share of higher-margin non-participating (Non-Par) products within the individual business increasing to 32.49 per cent from 30.34 per cent a year earlier. Non-Par APE rose 14.24 per cent to Rs 2,447 crore.

Commenting on the performance, LIC Chief Executive Officer and Managing Director R Doraiswamy said, 'We are happy to maintain our leadership in both Individual and Group Business during the first quarter of this financial year, despite increasing competitive intensity in the life insurance industry. Our overall market share by First Year Premium Income was 60.10% for the first quarter of FY 2026-27 and this fits in well with our market share strategy.'

He added, 'This is a direct outcome of our product diversification and distribution strategy.' Doraiswamy also welcomed new shareholders following the government's recent offer for sale (OFS), saying the insurer hopes to mark its 70th year with innovative product launches and other customer-focused initiatives.

The insurer's overall expense ratio increased marginally by 16 basis points to 10.63 per cent during the quarter. Meanwhile, gross NPAs under the policyholders' fund declined to Rs 7,168 crore from Rs 8,436 crore a year earlier, with the gross NPA ratio improving to 1.21 per cent from 1.42 per cent. (ANI)