Life Insurance Corporation of India (Finance - Insurance) — fundamental analysis, earnings data, and key metrics. PE: 10.0. ROE: 45.7%. This stock is not currently in the Nifty 500 momentum outperformers list.
Based on Q3 FY26 earnings • Updated Apr 19, 2026
What: Non-Par Share of Individual APE: 36.46%
Impact: 48% contribution to VNB
“And the impact of this is the 48% contribution to the VNB margin*, which indicates the contribution of non-par business”
What: Overall Expense Ratio: 11.65%
Impact: 132 bps reduction
“For the nine months ended December 31st, 2025, the overall expense ratio was 11.65%... there is a decrease of 132 basis points”
What: VNB Margin expansion of 170 bps to 18.8%
“Further, the net VNB margin has improved by 170 basis points on a Year on Year basis to 18.8% for the nine months ended December 31st, 2025”
What: ₹12 per share → Expecting it to be better in the current year
“We started at Rs.4, then we moved to Rs.10 and then we have moved to Rs.12. We are expecting it to be better in the current year also”
Earnings deceleration risks from management commentary
Trigger: The exemption of GST on premiums leads to the non-availability of ITC, which acts as an expense item.
Impact: PAT impact: 2.8% negative impact on VNB margin
Management view: Management aims to subsume this impact through cost rationalization and top-line growth.
Monitor: regulatory
Trigger: The company has submitted QIS results to IRDAI and is awaiting finalization of the regime.
Management view: Actively engaged with the regulator and conducting assessments for IFRS transition.
Monitor: regulatory
Key quotes from recent conference calls
“regarding the upper limit, where non-par share may peak, we had suggested that we have enough wind behind our sails and the momentum has been built [Previous Non-Par Share of Individual APE guidance]”
“Our objective is to appoint at least one Bima Sakhi in every Gram Panchayat and we would like to inform that out of 2,44,876 Gram Panchayats we have covered 52% [Initiative: Bima Sakhi Yojana]”
“So that has impacted 2.8%, but this includes the GST impact, the impact of persistency and alignment of expenses [Risk (regulatory): MEDIUM]”
“We have actually submitted QIS1 and QIS2 to IRDAI. While we have submitted the results, we are still in discussion with them [Risk (regulatory): LOW]”
Headline numbers from the latest earnings call
Revenue
₹3,71,293 Crore
Why: Growth was driven by a 13.56% increase in Group Business total premium income and a 5.89% rise in Individual New Business Premium Income.
Total premium income growth was supported by both individual and group segments.
PAT
₹33,998 Crore
Why: Profit growth was supported by a 27.96% increase in net VNB and improved operational efficiency as the expense ratio dropped to 11.65%.
PAT growth outpaced revenue growth due to margin expansion and cost rationalization.
Other Highlights
• Net VNB grew 27.96% to ₹8,288 Crore for 9MFY26.
• Solvency ratio improved to 2.19 as of December 31, 2025.
• AUM increased 8.01% year-on-year to ₹59.17 Lac Crore.
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
VNB Margin
18.8%
Why: Driven by a favorable yield curve and a higher proportion of non-par business.
Solvency Ratio
2.19
Why: Improved from 2.02 in the previous year due to strong capital position.
13-Month Persistency (Premium)
75.75%
Why: Lower ticket size policies from previous years had poorer persistency; management is addressing this by raising minimum ticket sizes.
Non-Par Share of Individual APE
36.46%
Why: Strategic focus on non-par savings and ULIPs to improve product mix.
Total AUM
₹59,16,680 Crore
Why: Growth in premium income and investment returns.
Overall Expense Ratio
11.65%
Why: Rationalization of expenses and digital initiatives.
Banca and Alternate Channel Share
7.45%
Why: Significant growth in premium from banks (40.23%) and alternate channels (136.42%).
Net VNB
₹8,288 Crore
Why: Driven by volume growth and margin expansion.
Forward-looking targets from management for Medium to long term
Confident that the upward trajectory of VNB margin will continue in the medium to long term.
Targeting growth rate commensurate with the industry to propel overall industry growth.
Guidance Changes
Dividend Payout: ₹12 per share → Expecting it to be better in the current year
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 19, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Life Insurance Corporation of India's latest quarterly results (Dec 2025) show
Life Insurance Corporation of India's current PE ratio is 10.0x.
Life Insurance Corporation of India's price-to-book ratio is 3.8x.
Life Insurance Corporation of India's fundamental strength based on key financial ratios
Life Insurance Corporation of India has a debt-to-equity ratio of N/A.
Life Insurance Corporation of India's return ratios over recent years
Life Insurance Corporation of India's operating cash flow is negative (FY2025).
Life Insurance Corporation of India's current dividend yield is 1.42%.
Life Insurance Corporation of India's shareholding pattern (Dec 2025)
Life Insurance Corporation of India's promoter holding has remained stable recently.
Life Insurance Corporation of India is an established outperformer with 1 weeks of consecutive Nifty 500 outperformance.
Life Insurance Corporation of India has 4 key growth catalysts identified from recent earnings analysis
Life Insurance Corporation of India has 2 key risks worth monitoring
In Q3 FY26, Life Insurance Corporation of India's management highlighted
Life Insurance Corporation of India's management has provided the following forward guidance for Medium to long term
Life Insurance Corporation of India's most important sub-sector-specific KPIs from the latest concall
Based on quantitative research signals, here is why Life Insurance Corporation of India may be worth studying
Life Insurance Corporation of India investment thesis summary:
Life Insurance Corporation of India's forward outlook based on current data signals
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
