Life Insurance Corporation of India will launch a new insurance product, LIC's New Bima Jyoti, effective August 10, 2026. The company disclosed the launch under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, notifying both the Bombay Stock Exchange and the National Stock Exchange of India Ltd. This new offering expands the corporation’s portfolio in the domestic savings segment.

The product is designed for the domestic market and does not cater to international customers. According to the filing, LIC's New Bima Jyoti falls under the category of Non-Par, Non-Linked, Life, Individual, Savings Plan. This classification indicates that the policy provides guaranteed benefits without participation in surplus profits and is not linked to underlying investment assets.

Product Details

The key specifications of the new product are outlined below:

Regulatory Disclosure

The disclosure was issued on August 07, 2026, by Anshul Kumar Singh, Company Secretary & Compliance Officer. The intimation was submitted to the Listing Departments of BSE Limited and NSE Limited, with Scrip Codes 543526 and LICI respectively. A copy of the intimation was also made available on the corporation’s website at www.licindia.in .

Market Context

The introduction of LIC's New Bima Jyoti adds to the insurer’s range of traditional savings plans. By focusing on the domestic market with a non-linked structure, the product appeals to risk-averse investors seeking guaranteed life cover and savings benefits without exposure to market volatility.

LIC of India reported a 22.81% year-on-year increase in standalone net profit after tax to ₹13,492.03 crore for the quarter ended June 30, 2026, driven by a sharp 61.32% rise in the Value of New Business (VNB). The insurer’s consolidated net profit stood at ₹13,584.25 crore for the same period. This growth signals improved profitability from new sales, crucial for long-term shareholder value, despite a competitive market environment. The Board of Directors approved these results on August 06, 2026.

The most material development was the surge in VNB to ₹3,136 crore, up from ₹1,944 crore in the corresponding quarter of FY26. This growth was underpinned by an expansion in the net VNB margin by 750 basis points to 22.9%, from 15.4% previously. Managing Director Dinesh Pant attributed this improvement to product diversification and distribution strategies. Total premium income increased 6.75% to ₹1,27,250 crore, with individual business premiums rising 5.52% to ₹75,416 crore and group business premiums growing 8.61% to ₹51,834 crore.

Key Financial Metrics

Operational efficiency remained stable, with the overall expense ratio increasing marginally by 16 basis points to 10.63%. The solvency ratio improved to 2.42 from 2.17 in the prior year quarter. Annualized Premium Equivalent (APE) for individual business rose 6.67% to ₹7,532 crore, while group business APE grew 10.20% to ₹6,160 crore. The share of non-participating products within individual business APE increased to 32.49% from 30.34%, indicating a shift toward higher-margin offerings.

Distribution and Product Mix

The investor presentation revealed that 4,28 agents fulfilled the Million Dollar Round Table (MDRT) criteria. Recruitment focused on younger talent, with 76.75% of agents recruited within the 18-40 years age group. Training infrastructure expanded, with 96,610 agents trained across Sales Training Centers and Zonal Training Centers. Specifically, 20,341 newly recruited agents were trained in Q1FY27.

Rural penetration continues to gain ground, with rural sales accounting for 53.26% of total business in Q1FY27, up from 52.85% in FY26. Urban sales declined to 46.74%. In terms of distribution channels, banks contributed 6.92% of new business premium (NBP) in Q1FY27, down from 7.67% in Q1FY26, while alternate channels grew to 3.38% from 4.23%. Digital marketing’s share remained stable at 0.59%.

What the Numbers Show

The disproportionate growth in VNB relative to premium income signals a strategic success in selling higher-value policies rather than just volume. While total premiums grew by 6.75%, the VNB more than doubled, suggesting that new sales are significantly more profitable than the existing book. This margin expansion, combined with a stable expense ratio, indicates that operational leverage is improving as the product mix shifts toward non-participating and linked plans, which typically carry better risk-adjusted returns for shareholders.

Regulatory and Corporate Actions

The financial results were reviewed by independent auditors V. Sankar Aiyar & Co. and Mukund M Chitale & Co., pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The auditors noted that the Board did not have independent directors during the review period due to tenure completion, and results were approved by the Audit Committee comprising executive and non-executive directors.

Additionally, LIC disclosed an Offer for Sale (OFS) of up to 6.50% of its paid-up equity share capital by the Government of India, announced on August 03, 2026. The company also deferred the adoption of Indian Accounting Standards (Ind AS) by one year, obtaining forbearance from IRDAI to implement them from April 1, 2027, instead of April 1, 2026. Shareholders received a final dividend of ₹10 per equity share for FY26, approved at the AGM held on July 27, 2026.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE0J1Y01017/f65cdbb0-b408-4b3c-a503-23b12d12810d.pdf