New Delhi: State-owned life insurer LIC of India on Thursday reported a 17 percent jump in net profit at Rs 12,958 crore in the third quarter ended December 2025 on the back of growth in new business and investment income.
The country's biggest insurer, Life Insurance Corporation of India (LIC), 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, LIC said in a regulatory filing.
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.
Income from investment increased to Rs 1,07,608 crore from Rs 94,336 crore in the same quarter 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.
About new business, LIC said it garnered first-year premiums of Rs 10,605 crore as compared to Rs 7,285 crore in the same quarter a year ago.
Talking to the media post declaration of quarterly numbers, LIC CEO & MD, R Doraiswamy, said the government is committed to bringing down its stake in the insurance company up to 10 percent by the end of FY27 in tranches.
"So, stake reduction would take place. Timing of stake dilution would be taken by the government depending on various considerations," he said.
Whether it would be done through Offer for Sale or Qualified Institutional Placement (QIP) is a call to be taken by the government, he said.
Currently, the Government holds a 96.5 percent stake in LIC.
The Government is required to offload another 6.5 percent stake in the public sector life insurer to meet the mandated 10 percent public shareholding requirement by May 2027.
Asked about stake dilution in NSE, Doraiswamy said LIC has not yet decided as to how much it would dilute when the exchange goes for a public offer.
LIC is one of the major investors in the National Stock Exchange (NSE).
To a question on its planned foray in the health insurance sector, he said, LIC was looking to pick up stakes in a standalone health insurer, but it is not going very fast on that proposal.
During the nine months period ended December 2025, LIC's profit too increased by 17 percent to Rs 33,998 crore as compared to Rs 29,138 crore in the same period a year ago.
In terms of market share measured by First Year Premium Income (FYPI), as per IRDAI, LIC continues to be the market leader in the Indian life insurance business with an overall market share of 57.07 percent for the 9-month ended December 2025, as compared to 57.42 percent for the 9-month ended December 2024.
Total Premium Income for three quarters rose to Rs 3,71,293 crore as compared to Rs 3,40,563 crore during the preceding nine-month period ended December 2024, registering a growth of 9 percent.
The solvency ratio also increased to 2.19 as against 2.02 on December 31, 2024.
The Assets Under Management (AUM) improved to Rs 59,16,680 crore as against Rs 54,77,651 crore on December 31, 2024, registering an increase of 8 percent.
For the nine months ended December 2025, Doraiswamy said, on the Annualized Premium Equivalent (APE) basis, the total premium was Rs 44,007 crore.
Further, the net VNB margin has improved to 19 percent as compared to 17 percent in the same period a year ago.
"The consumers and the companies in the life insurance industry have responded positively to the various initiatives of the government, especially to GST 2.0. At LIC, we have further increased our performance by achieving higher and better parameters on volume growth as well as product and channel diversification," he said.
While LIC has roll out various advanced digital projects, he said, the company has also kept a very focused approach on creating a force of women agents through the Bima Sakhi Yojana with the objective of reaching out to more customers in rural India.
Till December 2025, 2,97,028 women have been appointed as Bima Sakhis.
About the channel diversification journey, LIC said it has recorded an increase in the contribution of bancasurance and alternate channels in the overall mix of individual new business premiums.
"We are confident of the growth prospects of all segments of our business as we move ahead. LIC remains grateful to its various stakeholders for their continuous trust as we dedicate our efforts towards achieving the national objective of 'Insurance for All by 2047'," he added.
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