LIC Prioritizes Margin Quality Over Aggressive Growth, Eyes Steady Improvement

• LIC focuses on continuous improvement in product and channel mix, a strategy initiated post-IPO.
• The insurer sees a rise in higher-margin non-participating (non-PAR) products and increased bancassurance contributions.
• VNB margins improved to over 21% in Q3FY26, with a nine-month average of 18.8%, up from 17.8% last fiscal.
• LIC aims to consolidate its market share around 36.8% and expects further margin improvement through cost rationalization.
• The company is analyzing GST impact and expects some rationalization, along with improvements in operating assumptions.