Life Insurance Corporation of India (LIC), the country's largest insurer, has highlighted potential impacts on growth due to ongoing geopolitical tensions in West Asia.
With declining savings, LIC's leadership remains cautious yet optimistic about maintaining their growth targets.
R. Doraiswamy, Managing Director and Chief Executive of LIC, addressed the challenges during the company's earnings call.
He acknowledged that every sector is feeling the strain of the West Asia conflict. This situation is expected to affect renewals, as policyholders may reduce insurance savings amid financial uncertainties.
Despite these concerns, LIC reported a consolidated net profit of ₹23,467 crore for the March quarter, reflecting a 23% increase year-on-year.
For the fiscal year 2025-26, profit after tax surged by 19.3%, reaching ₹57,419 crore. The insurer also experienced a 9.8% rise in total premium income, totaling ₹5.4 trillion.
LIC's renewal premium climbed by 5.9% to ₹2.7 trillion, while new business premium grew by 8.3% to ₹67,676 crore.
The company is actively working to enhance renewal premium collections by capitalising on existing policies.
Read More: LIC Share Price in Focus After Q4 FY26 Earnings Results: Net Profit up 23.3% YoY!
As of March 2026, LIC's market share in terms of premium slightly declined to 56.7%, while the policy count market share dipped to 65.2%.
Doraiswamy expressed a focus on industry growth, suggesting that a larger market pie benefits everyone.
The removal of GST on retail term and health policies helped boost sales. However, surrender value norms, enforced in October 2024, have posed challenges.
Despite these hurdles, growth prospects for FY27 appear positive, according to observed trends in April 2026.
As of May 22, 2026, at 1:05 PM, Life Insurance Corporation of India share price on NSE was trading at ₹817.90 up by 2.21% from the previous closing price.
LIC is navigating the challenges posed by the West Asia conflict, focusing on sustaining growth even with lower savings levels. While geopolitical tensions have created financial uncertainties, LIC's strategies to boost renewal collections and adapt to market changes remain central to its approach.
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Published on: May 22, 2026, 1:39 PM IST
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