Can LIC Offset the ₹1,400 Crore GST Hit Through Cost Cuts and Higher-Margin Policies?

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0 February 6, 2026 10:45

Life Insurance Corporation of India (LIC) has absorbed a ₹1,400 crore impact after losing input tax credit benefits following the GST exemption on life and individual health insurance policies. Despite higher operating costs, LIC says tighter expense control and a higher share of margin-accretive non-participating policies helped offset the hit. The insurer reported lower expense ratios, improved value of new business margins, and a strong rise in profits for the December quarter and nine-month period. LIC also ruled out immediate commission cuts and hinted that the government may begin stake sale tranches next year to meet public shareholding norms.

#LIC #GST #InsuranceNews #IndianEconomy #LifeInsurance #BusinessNews #Earnings #Markets #Finance

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