In the first quarter of FY27, Life Insurance Corporation (LIC) posted net premium income of ₹1.3 trillion, marking a 7% year‑over‑year increase. The company’s renewal premium rose 3% to ₹618 billion, while single premium grew 9% to ₹564 billion.
First‑year premium climbed 22% to ₹92 billion, and new business APE rose 8% to ₹137 billion. Individual APE was ₹75.3 billion, up 7% YoY, and group APE reached ₹61.6 billion, up 10%.
Absolute VNB grew 61% to ₹31 billion, contributing to a 730‑basis‑point jump in VNB margin, which now stands at 22.9%.
Shareholder PAT increased 23% to ₹135 billion, reflecting robust profitability.
Based on the strong Q1 performance and rising non‑par contributions, the firm has lifted its FY27/28 VNB margin estimate and expects operating RoE between 11.5% and 12%. The rating remains BUY with a revised target price of ₹480, based on a 0.6x FY28E enterprise value.