India's leading insurer Life Insurance Corp (LIC) on Thursday reported a 23% year-on-year (YoY) growth in its standalone net profit at Rs 13,492 crore in the first quarter of FY27, compared with Rs 10,986 crore a year ago.

Net premium income in the reporting period increased 7% YoY to Rs 1.27 lakh crore.

LIC continued to lead the Indian life insurance market, with an overall market share of 60.1% in first-year premium income, according to Irdau data. Its market share stood at 38.89% in individual business and 70.9% in group business during the quarter.

LIC’s total individual business premium rose 6% to Rs 75,416 crore from Rs 71,474 crore in the year-ago quarter. Group business premium income grew faster, rising 9% to Rs 51,834 crore from Rs 47,726 crore.

The insurer sold 31.02 lakh policies in the individual segment during the quarter, compared with 30.4 lakh policies in the same period last year. This was a growth of 2%. On an annualised premium equivalent, or APE, basis, total premium stood at Rs 13,692 crore in Q1FY27. Individual business accounted for Rs 7,532 crore, or 55%, while group business contributed Rs 6,160 crore, or 45%.

LIC's value of new business rose 61% to Rs 3,136 crore from Rs 1,944 crore in the year-ago period. Net VNB margin expanded by 750 basis points to 22.9% from 15.4%.

Within the individual business, participating products accounted for 67.51% of APE, or Rs 5,085 crore. Non-participating products contributed 32.49%, or Rs 2,447 crore. Non-par APE rose 14% from Rs 2,142 crore in the June quarter last year. Its share in individual business APE increased to 32.49% from 30.34%.

The rise in VNB and margin shows LIC’s continued shift toward a better product mix.

LIC's assets under management increased 4% YoY to Rs 59.39 lakh crore as of June 30, 2026, from Rs 57.05 lakh crore a year earlier.

The solvency ratio improved to 2.42 from 2.17 in the same quarter last year. The overall expense ratio stood at 10.63%, compared with 10.47% in Q1FY26, an increase of 16 basis points. Yield on investments in the policyholders’ fund, excluding unrealised gains, stood at 8.28%, compared with 8.45% a year earlier.

Persistency ratios were mixed. On a premium basis, the 13th month persistency ratio stood at 75.33%, compared with 75.63% last year. The 61st month ratio was 61.12%, compared with 63.85%.

On a number of policies basis, the 13th month persistency ratio improved to 66.45% from 64.35%, while the 61st month ratio declined to 48.74% from 51.12%.

LIC CEO and MD R Doraiswamy said the insurer maintained leadership in both individual and group business despite rising competition 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,” Doraiswamy said.

He said the rise in VNB and margin was a result of LIC’s product diversification and distribution strategy. "What gives us even more happiness is that our VNB has grown by 61% plus and our VNB margin has expanded by 7.5% to 22.90% this year," he said.