LICI Q3 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹2,35,954 Cr
verified against source
Revenue YoY
9.02%
reported change
EBITDA
Pending
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
LIC reported resilient 9M FY26 results with PAT up 16.68% YoY to Rs 33,998 crore and VNB growth of 27.96% YoY to Rs 8,288 crore, driven by strong non-par business expansion (non-par share of individual APE rising to 36.46% from 27.68%). The VNB margin improved 170 bps to 18.8%, aided by favorable yield curves (+80-83 bps at longer tenures) and operating assumption changes. The expense ratio declined 132 bps to 11.65% through digitalization and workforce rationalization. However, market share by first-year premium slipped 35 bps to 57.07%, with individual business market share at 35.84% versus 37.21% last year. Persistency ratios deteriorated across cohorts, with 13th-month persistency at 75.75% vs 76.66% YoY, reflecting lower ticket-size policies and seasonal income patterns in rural customer segments. The bank assurance and alternate channel showed strong momentum with 66.74% YoY growth, now contributing 7.45% of individual NBP versus 4.73% last year. Management flagged ongoing competition from new entrants (100% FDI) as a structural headwind, though maintains focus on sustainable growth over market share defense. The solvency ratio improved to 2.19 from 2.02, providing adequate buffer.
Colored figures show movement against the previous available record.
Guidance to track
- Management aims to appoint at least one Bimasaki in every gram panchayat, with 1.27 lakh of 2.45 lakh gram panchayats already covered (52%) as of December 31, 2025.
- Government shareholding to reduce by 10% to reach 90% within 5 years of IPO (by 2027); further share transaction expected in coming months.
- Minimum sum assured increased in some products last year; management expects higher average individual AP going forward (single premium AP rose from Rs 28,334 to Rs 31,882; non-single from Rs 20,542 to Rs 23,531).
Risks flagged
- 13th-month persistency declined to 75.75% vs 76.66% YoY on premium basis; 61st-month to 61.09% vs 61.84%. Management attributes this to low ticket-size policies and seasonal income patterns in mass-market/rural customer segments, noting interventions (minimum ticket size revision) will take 12+ months to reflect in cohort data.
- Overall market share by first-year premium declined to 57.07% from 57.42% YoY; individual business share slipped to 35.84% from 37.21%. CEO acknowledged that increasing number of players (including 100% FDI entrants) will continue to fragment market share, though stated focus remains sustainable growth over share defense.
- Analyst repeatedly requested breakdown of 2.8% operating assumption impact into GST/persistency/expense components; management declined to provide granular splits, stating factors 'interact' and change with business mix. GST estimated at ~40% of the 2.8% headwind, but exact split remains unverifiable.
- Total agent count declined to 14.07 lakh from 14.19 lakh YoY; market share by number of agents fell to 45.32% from 47.40%. One major alternate channel partner faced operational issues and could not repeat previous year's volumes, though management expects recovery.
Key quotes
- LIC can take a decision to improve the ticket size significantly. Naturally, it will lead to higher persistency. But then affordability of insurance and being responsible for ensuring that everybody is covered is also very paramount because the customer base is something which is USP for LIC.
- The favorable yield curve of Q3 of around 83 basis points or 80 basis points particularly at higher durations has impacted and contributed to an increase of 1.9% in VNB margin.
- We are dynamically managing our product portfolio... currently we have 57 products which comprise 37 individual products, 12 group products, seven individual riders and one group rider.
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