Life Insurance Corporation Of India · forward-looking guidance across the available source record.
Guidance tracker
Management indicated that as non-par proportion increases, corresponding margin improvement should follow. Non-par products have higher margins than par products, and ULIP growth contributes volume though at lower margins.
Group business accounts for approximately 30% of overall VNB despite lower margin profile. Focus is on shifting mix toward protection/assurance side to improve margins, though growth and customer solutions remain priorities.
Management expects growth in both absolute volume and APE terms to substantially improve in H2 FY26 as market adjusts to regulatory changes from master circular implemented last year.
CEO vision includes pan-India rollout of customer engagement and intermediary apps within 5-6 months. Data lake and analytics platform being built with fintech partners. AI/ML integration in underwriting and risk assessment is planned.
Management confirmed targeting mid-20s VNB margin by year-end, working towards that goal, with margins expected to improve further from Q1's 22.9% base.
Management expects AP growth to increase over subsequent quarters as focus on new business intensifies through the year, with non-par growth trajectory continuing from Q1.
The negative 190bps impact from expense assumptions (including GST ITC loss) will primarily affect Q1 and Q2 comparisons versus last year's quarters that had ITC available; impact to reduce thereafter.
Bank assurance weakness in Q1 due to delayed marketing plans with partners and West Asia conflict impact on remittances; management expects robust recovery and outperformance versus prior year in remaining quarters.
Management expects margin improvement trajectory to continue into H2 and FY27, noting that margins historically improve Q1 to Q4. Stated confidence in delivering better than current 17.6% VNB margin.
Management is confident of complete catch-up in policy count by year-end, noting very good traction from October 1st post-GST exemption announcement and strong sales in Q3 so far.
Non-par share expected to improve further from current 36.31% based on momentum built over 3 years, though no specific target set. Growth expected across all segments (par, non-par, ULIP, annuities) in coming quarters.
Management explicitly stated focus on topline growth rather than market share. Aim to grow faster than industry, which would naturally improve market position. Not targeting specific mix proportions.
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).