LIC's profits soar despite GST policy hit
LIC just posted a 17% jump in quarterly profits (₹12,930 crore for Oct-Dec 2025), even after taking a ₹1,400 crore hit from new GST exemptions on life and health policies.
The boost came from selling more non-participating policies (an increase in the share of margin-accretive non-participating policies) and keeping costs in check.
Value of new business up 28% YoY
LIC's expense ratio—basically how much it spends to run the business—fell to 11.65% over nine months, down by 132 basis points.
That's thanks to higher-margin policy sales and tighter cost control.
Plus, the value of new business shot up 28% year-on-year to ₹8,288 crore.
Nine-month after-tax profit climbs nearly 17%
LIC's nine-month after-tax profit climbed nearly 17% to ₹29,138 crore, with VNB margins rising too (now at 18.8%).
With policy prices dropping due to GST changes, LIC expects expenses to fall even further and margins to improve.
All signs point toward a solid run ahead—even with the recent challenges.