Life Insurance Corporation of India — Q1 FY27 earnings call
Summary generated by AI from the official transcript Life Insurance Corporation of India filed with BSE on 12 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
LIC reported profit after tax of Rs 13,492 crore for Q1 FY27, up 22.81% year-on-year, while net VNB margin improved 750 basis points to 22.9% and net VNB grew 61.32% to Rs 3,136 crore. Total premium income rose 6.75% to Rs 127,250 crore, with individual new business premium up 14.48% and group business premium up 8.61%. Management attributed margin improvement to a shift toward non-par savings and protection products, while an expense ratio increase was linked to the loss of input tax credit following GST exemption on individual life insurance premiums.
Numbers mentioned
Total premium income: 127,250 crore rupees (Q1 FY27)
p. 4
“For the quarter ended 30th June 2026, we have recorded a total premium income of 127,250 crore rupees as compared to total premium income of 119,200 crore rupees for the quarter ended 30th June 2025, registering a growth of 6.75% on a year-on-year basis.”
R. Doraiswamy, page 4 of the filed PDF · View the filing
Individual new business premium income: 14,351 crore rupees (Q1 FY27)
p. 4
“The individual new business premium income for quarter ended 30 June '26 was 14,351 crore rupees as compared to 12,536 crore rupees for the corresponding period last year, thereby registering a growth of 14.48% on a year-on-year basis.”
R. Doraiswamy, page 4 of the filed PDF · View the filing
Profit after tax: 13,492 crore rupees (Q1 FY27)
p. 5
“The profit after tax for the quarter ended 30th June '26 was 13,492 crore rupees as compared to 10,986 crore rupees for the quarter ended 30th June '25, registering a growth of 22.81% on a year-on-year basis.”
R. Doraiswamy, page 5 of the filed PDF · View the filing
Net VNB margin: 22.9% (Q1 FY27)
p. 5
“The net VNB margin has improved by 750 basis points on a year-on-year basis from 15.4% for the quarter ended 30 June '25 to 22.9% for the first quarter of the current year.”
R. Doraiswamy, page 5 of the filed PDF · View the filing
Net VNB: 3,136 crore rupees (Q1 FY27)
p. 5
“Further, the net VNB has registered a growth of 61.32% on a year-on-year basis from 1,944 crore rupees for the quarter ended 30th June '25 to 3,136 crore rupees for the quarter ended 30th June '26.”
R. Doraiswamy, page 5 of the filed PDF · View the filing
Solvency ratio: 2.42 (as on 30 June 2026)
p. 5
“The solvency ratio as on 30th June '26 improved to 2.42 as against 2.17 on 30th June 2025.”
R. Doraiswamy, page 5 of the filed PDF · View the filing
Assets under management: 59,39,384.39 crore rupees (as on 30 June 2026)
p. 5
“Our assets under management has registered a growth of 4.1% on a year-on-year basis from 57,05,341.44 crore rupees as on 30th June '25 to 59,39,384.39 crore rupees as on 30th June 2026.”
R. Doraiswamy, page 5 of the filed PDF · View the filing
Overall expense ratio: 10.63% (Q1 FY27)
p. 6
“For the quarter ended 30th June 2026, the overall expense ratio was 10.63% as compared to 10.47% for the same period last year.”
R. Doraiswamy, page 6 of the filed PDF · View the filing
Market share by first year premium income: 60.10% (Q1 FY27)
p. 4
“Our market share by first year premium income for three months ending 30th June '26 is 60.10% as per IRDAI as compared to 63.51% for the similar period ended 30th June 2025.”
R. Doraiswamy, page 4 of the filed PDF · View the filing
Total APE: 13,692 crore rupees (Q1 FY27)
p. 4
“Total annualized premium equivalent for the quarter ended 30th June '26 is 13,692 crore rupees, which comprised individual APE of 7,532 crore rupees and group APE of 6,160 crore rupees.”
R. Doraiswamy, page 4 of the filed PDF · View the filing
Non-par share of individual APE: 32.49% (Q1 FY27)
p. 4
“Therefore, our non-par share of individual APE is 32.49% and par is 67.51% for the quarter ended 30th June '26.”
R. Doraiswamy, page 4 of the filed PDF · View the filing
ASM funds: 180,000 crores
p. 13
“ASM funds is at 180,000 crores. .”
R. Doraiswamy, page 13 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
VNB margin — next few quarters
stated conditionally by R. Doraiswamy
p. 14
“We don't normally give a guidance, but we expect it to improve over the next few quarters as well, of course, keeping the one uncertain factor of the RFR.”
R. Doraiswamy, page 14 of the filed PDF · View the filing
VNB margin — mid-20s · by end of the year
stated as an aspiration by R. Doraiswamy
p. 18
“Yes, sir. Yes, we are working towards that.”
R. Doraiswamy, page 18 of the filed PDF · View the filing
VNB margin — industry average
stated as an aspiration by R. Doraiswamy
p. 17
“in terms of VNB margin, we expect the margin to grow something more than where we currently are and settle something around the industry average.”
R. Doraiswamy, page 17 of the filed PDF · View the filing
Non-par growth — current year
stated firmly by R. Doraiswamy
p. 10
“We would like to see that the non-par growth continues the way it has been growing from Q1 to Q4 over the previous years that will continue in the current year as well.”
R. Doraiswamy, page 10 of the filed PDF · View the filing
Individual protection growth — for some more quarters
stated conditionally by R. Doraiswamy
p. 12
“We can confidently hope to increase this increase in protection performance to continue for some more quarters, certainly because our focus is to increase protection also in the -- as part of our business line.”
R. Doraiswamy, page 12 of the filed PDF · View the filing
Bancassurance growth — subsequent quarters
stated firmly by R. Doraiswamy
p. 15
“We expect it to be covered up in the subsequent quarters. We will be doing much better than what we did last year.”
R. Doraiswamy, page 15 of the filed PDF · View the filing
ULIP sales
stated conditionally by R. Doraiswamy
p. 8
“Yes, ULIP, we do expect to come back when the market situation normalizes.”
R. Doraiswamy, page 8 of the filed PDF · View the filing
APE growth — subsequent quarters
stated conditionally by R. Doraiswamy
p. 12
“We expect that this will get more pronounced and this growth in APE will also increase over the subsequent quarters as our focus on new business also increases as the year passes on.”
R. Doraiswamy, page 12 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said the GST exemption removed input tax credit availability, raising the expense ratio by 16 basis points, and detailed assumption change contributions to VNB margin.
Answered by R. Doraiswamy
Asked by Swarnabha Mukherjee: What are the assumption changes in the VNB walk and is the expense impact GST-related?
p. 8
“While the GST has gone on the individual lines and the premium, the nonavailability of input tax credit has had an impact on the overall expense ratio.”
R. Doraiswamy, page 8 of the filed PDF · View the filing
Management attributed the decline to market volatility affecting confidence and said ULIP is expected to recover once markets normalize.
Answered by R. Doraiswamy
Asked by Swarnabha Mukherjee: Why did ULIP premium decline year-on-year and will it recover in Q2?
p. 8
“ULIP premium reduction is naturally a function of the market scenario when confidence in the market gets affected due to the high volatility in the market functioning.”
R. Doraiswamy, page 8 of the filed PDF · View the filing
Management explained APE and WRP measure different components, with APE not counting subsequent renewal premiums the way WRP does.
Answered by R. Doraiswamy
Asked by Swarnabha Mukherjee: Why is there a difference between RWRP and individual APE figures?
p. 8
“APE does not take into account the actual first year premium received subsequent to the new business completion, whereas it takes into account the new business premium received where the premium is multiplied by the frequency to arrive at the annual premium equivalent.”
R. Doraiswamy, page 8 of the filed PDF · View the filing
Management said many Bima Sakhi recruits quit after realizing performance was required, and the corporation is weeding out non-serious candidates.
Answered by R. Doraiswamy
Asked by Swarnabha Mukherjee: Why has the number of agents in urban areas declined?
p. 9
“So we have a focus on weeding out non-serious candidates from the agency force, and that is something which will continue to happen.”
R. Doraiswamy, page 9 of the filed PDF · View the filing
Management explained that par surplus is only recognized once a year at 90-10 split, while non-par surplus flows in quarterly, plus ASM fund accretion boosts shareholder profit.
Answered by R. Doraiswamy
Asked by Prayesh Jain: What explains the fact that most of LIC's surplus comes from the non-par book despite it being smaller than the par book?
p. 13
“Ultimately, 90-10 share has to happen. So that happens only when the valuation gets completed at the end of the year. So you will see the impact of par business surplus only in the quarter 4.”
R. Doraiswamy, page 13 of the filed PDF · View the filing
Management (via Hemant Buch) attributed the divergence to pressure on bank-driven annuity and ULIP sales due to the West Asia conflict affecting remittances and market volatility.
Answered by Hemant Buch
Asked by Mohit Mangal: Why did bancassurance individual NBP growth lag behind the growth in number of policies sold?
p. 17
“This is precisely because of the West Asia conflict, which has affected the remittance side and the major contributor for us being annuity and ULIPs, both got impacted because of the remittance, the annuity side got affected and because of the market upheaval, the ULIP side also got affected, which precisely took over some shine out of, in fact, the bank-driven business.”
Hemant Buch, page 17 of the filed PDF · View the filing
Management said the increase is driven by both annuity single-premium growth and the rise in minimum ticket size for regular premium products, and described it as sustainable.
Answered by R. Doraiswamy
Asked by Shobhit Sharma: Is the average ticket size increase sustainable and what is driving it?
p. 18
“Two, on the regular premium side also because we have increased the minimum ticket of our major selling poly from INR1 lakh to INR2 lakh that has already resulted in uptick in the average ticket size.”
R. Doraiswamy, page 18 of the filed PDF · View the filing
Risks flagged
Loss of input tax credit following GST exemption increased the overall expense ratio
p. 8
“the nonavailability of input tax credit has had an impact on the overall expense ratio”
R. Doraiswamy, page 8 of the filed PDF · View the filing
ULIP premium is exposed to market volatility affecting customer confidence
p. 8
“ULIP premium reduction is naturally a function of the market scenario when confidence in the market gets affected due to the high volatility in the market functioning.”
R. Doraiswamy, page 8 of the filed PDF · View the filing
Agent attrition from Bima Sakhi recruits who did not understand performance requirements
p. 9
“a good number of candidates who have taken up Bima Sakhi without fully understanding the requirement”
R. Doraiswamy, page 9 of the filed PDF · View the filing
RFR (risk-free rate) movement is an uncertain factor affecting margin outlook
p. 14
“keeping the one uncertain factor of the RFR”
R. Doraiswamy, page 14 of the filed PDF · View the filing
Group business persistency experience has been negative
p. 15
“Group side, the persistency has contributed to negatively.”
Ajay Kuma Shrivastava, page 15 of the filed PDF · View the filing
West Asia conflict affected remittances, impacting bank-driven annuity and ULIP sales
p. 17
“This is precisely because of the West Asia conflict, which has affected the remittance side and the major contributor for us being annuity and ULIPs, both got impacted because of the remittance”
Hemant Buch, page 17 of the filed PDF · View the filing
Increase in minimum sum assured reduced low ticket size policy sales
p. 17
“So the low ticket size policies have come down, no doubt.”
R. Doraiswamy, page 17 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.