Newsletter
LIC jumped 7% after posting a 38% jump in profit but growth in new business didn’t keep up.
The country’s biggest life insurer surprised the street with strong profits, but slipped on sales.
By the numbers:
- Profit after tax (PAT): ₹19,013 crore, up 38% YoY
- New business premium: ₹70,019 crore, down 9% YoY
- Value of New Business (VNB): ₹3,534 crore, down 14% YoY
What worked: the profit spike came largely from investment income and better margins, even as policy sales slowed. Growing competition from nimbler insurers and digital insurance buying is presenting headwinds to LIC’s model.
Zoom out: at 4.2%, India’s insurance penetration still lags global levels. The post-COVID awareness bump, rising middle class, and digitisation should help—but LIC is no longer the only giant in the room. Private players like HDFC Life and SBI Life are moving faster, with sharper digital plays and more agile sales models.
