Shares of Life Insurance Corporation of India (LIC) rose sharply by up to 8% on Tuesday following the announcement of its third quarter results. The rise in investor interest came after the state-run insurer posted a notable increase in net profit for the October to December 2025 period.
LIC reports 17% growth in quarterly profit
LIC registered a 17% year-on-year growth in net profit for the third quarter of financial year 2025–26. The performance was supported by improved income from investments and better underwriting results. The robust financials contributed to a positive market sentiment, driving a rally in the company’s stock price during early trading hours.
Strong investor response boosts market value
Following the declaration of the quarterly results, LIC shares witnessed heightened buying activity on the stock exchanges. The surge in share price led to a significant increase in the market capitalisation of the insurance giant. Market analysts noted increased interest from institutional and retail investors amid expectations of continued financial improvement in the coming quarters.
Government continues with stake reduction strategy
As per the latest data, the Government of India held a 96.50% stake in LIC at the end of December 2025. The government is currently implementing a phased disinvestment plan. It aims to reduce its shareholding in the company to 90% by the end of the 2026–27 financial year. This is part of a broader strategy to increase public shareholding and enhance market efficiency in public sector enterprises.
LIC maintains leadership in insurance sector
LIC remains the largest life insurance provider in India, with a broad product portfolio and an extensive distribution network. Despite increasing competition from private insurers, the corporation has retained a dominant position in both individual and group business segments. Its ongoing digital initiatives and focus on customer service are seen as key to sustaining its leadership in the segment.
Market outlook and investor interest
The positive financial results have strengthened investor confidence in LIC’s future performance. Market participants are closely watching the company’s growth trajectory, particularly in the context of its investment income and policy sales. Upcoming quarters are expected to be crucial in determining the long-term prospects of LIC shares in the stock market.
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