Mumbai, Sep 28 (IANS) Life Insurance Corporation of India (LIC) attracted strong investor interest on the first day after the government scrapped goods and services tax (GST) on individual traditional life insurance policies.
The insurer drew inflows of over Rs 1,100 crore in a single day, according to reports.
This development is significant as LIC usually receives around Rs 5,000 crore of monthly premium income from retail policyholders.
The inflows seen on the very first day after the tax relief highlight the positive sentiment among policyholders and the potential boost for the insurance sector.
Industry experts said that the removal of GST has made traditional life insurance policies more affordable and attractive for individual buyers, which is expected to push up sales in the coming months.
Earlier this financial year, LIC had reported a steady rise in both profit and premium income.
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The company posted a consolidated net profit of Rs 10,957 crore in the April–June quarter (Q1) of FY26, a 3.91 per cent increase compared to the same period previous year 9Q1 FY25).
Its net premium income also grew by 4.7 per cent to Rs 1,19,618 crore, the insurer informed the exchanges.
LIC continues to maintain its leadership in the life insurance industry with a market share of over 63 per cent in first-year premium income.
“During the first quarter of this financial year, our overall market share by First Year Premium Income was 63.51 per cent and we maintained our leadership in both Individual and Group Business,” R Doraiswamy, CEO and MD, LIC said in an exchange filing dated August 7.
“Key elements of our strategy like increase in Non-Par share in Individual business, increase in VNB margin, increase in Banca share are fully on track,” Doraiswamy added.
The net profit of the company increased 5 per cent YoY on a standalone basis to Rs 10,986.51 crore.
This report is from IANS news service. NewsGram holds no responsibility for its content. (VP)
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