LIC of India , the country's largest insurer, has reported a robust 16.36% year-on-year increase in profit after tax for the first half of fiscal year 2026, reaching Rs 21,040 crore. The financial results, released on November 6, 2025, highlight LIC's strategic focus on expanding its non-participating (non-par) business and improving operational efficiency.

Key Financial Highlights

Strategic Shift Towards Non-Par Business

LIC has made significant strides in diversifying its product mix, with a particular emphasis on non-par products. The share of non-par APE within the individual business increased to 36.31% in H1 FY26, up from 26.31% in the same period last year. This shift aligns with LIC's strategy to enhance profitability and offer a more diverse range of products to customers.

Operational Efficiency Improvements

The insurer has demonstrated a commitment to cost optimization, with the overall expense ratio decreasing by 146 basis points to 11.28% for H1 FY26. This improvement in operational efficiency is expected to contribute positively to the company's bottom line.

Channel Diversification

LIC has also made progress in diversifying its distribution channels. The bancassurance and alternate channels' share of Individual New Business Premium (NBP) increased to 7.12% in H1 FY26, compared to 4.10% in the previous year, representing a growth of 67.62%.

Market Position and Solvency

Despite intense competition, LIC maintained its market leadership with an overall market share of 59.41% in terms of First Year Premium Income (FYPI) for the half year ended September 30, 2025. The company's solvency ratio improved to 2.13 from 1.98 in the previous year, indicating a strong financial position.

Management Commentary

R Doraiswamy, CEO & MD of LIC, expressed optimism about the recent GST changes announced for the insurance industry, stating, "We at LIC are very optimistic about the positive impact of the GST changes announced for the Insurance Industry by the Government of India during September 2025. It is our firm belief that these changes are in the best interest of customers and will lead to further accelerated growth of the life insurance industry in India."

Doraiswamy also highlighted the company's progress in implementing its diversification strategy, saying, "LIC has once again demonstrated the successful implementation of its strategy pertaining to both product and channel diversification, that we have been pursuing since our listing."

Future Outlook

LIC remains focused on enhancing insurance penetration and density in India. The company is channeling its efforts towards achieving "Insurance for All by 2047," aligning with the broader national goal of increasing financial inclusion.

As LIC continues to adapt to changing market dynamics and customer preferences, its strategic focus on non-par products, channel diversification, and operational efficiency is expected to drive sustainable growth and profitability in the coming years.

LIC of India , the country's largest insurer, has reported a 16.36% year-on-year increase in its profit after tax for the first half of the fiscal year 2026. The insurance giant's financial performance showcases its resilience and growth in a dynamic market environment.

Key Financial Highlights

LIC's profit after tax for H1 FY2026 stood at ₹21,040.00 crore, marking a substantial rise from ₹18,082.00 crore in the corresponding period of the previous year. This impressive growth in profitability underscores LIC's strong market position and effective financial management.

The company's total premium income also witnessed a healthy uptick, growing by 5.14% to ₹2,45,680.00 crore in H1 FY2026. This increase in premium income reflects LIC's ability to expand its business operations and capture a larger market share.

Market Share and Business Mix

LIC continues to maintain its dominant position in the Indian life insurance market. For the half-year ended September 30, 2025, LIC held an overall market share of 59.41% in terms of First Year Premium Income (FYPI). However, this represents a slight decline from 61.07% in the previous year. In the individual business segment, LIC commanded a market share of 37.21%, while in the group business segment, it held a substantial 72.74% market share.

The insurer has made significant strides in diversifying its product mix, with a notable increase in the share of non-participating (Non-Par) products. The Individual Non-Par Annualized Premium Equivalent (APE) surged 30.47% to ₹6,234.00 crore, raising its share within individual business to 36.31%, compared to 26.31% in the same period of the previous year.

Profitability and Expense Management

LIC's profitability metrics have shown improvement, with the Value of New Business (VNB) increasing by 12.30% to ₹5,111.00 crore for the six months ended September 30, 2025. The VNB margin also expanded by 140 basis points to 17.6%, indicating enhanced profitability of new business written during the period.

The company has made significant progress in optimizing its costs. For H1 FY2026, LIC's overall expense ratio decreased by 146 basis points to 11.28%, down from 12.74% in H1 of the previous year. This reduction in expenses has contributed positively to the company's bottom line.

Asset Under Management and Solvency

LIC's Assets Under Management (AUM) grew by 3.31% year-on-year, reaching ₹57.23 lakh crore as of September 30, 2025. This growth in AUM reflects the company's expanding business and effective asset management strategies.

The insurer's solvency ratio, a key indicator of financial stability, improved to 2.13 as of September 30, 2025, up from 1.98 a year ago. This enhancement in the solvency ratio underscores LIC's strong financial position and its ability to meet long-term liabilities.

Challenges and Areas of Concern

Despite the overall positive performance, LIC faced some challenges in its individual business segment. The individual new business premium income declined by 3.54% to ₹28,491.00 crore. Additionally, the number of individual policies sold dropped by 20.83% to 72.6 lakh, indicating potential areas for improvement in the company's individual business strategies.

Management Commentary

CEO & MD Shri R Doraiswamy expressed optimism about the company's performance and future prospects. He highlighted the positive impact of recent GST changes on the insurance industry and LIC's efforts to pass on these benefits to customers. Doraiswamy also emphasized LIC's successful implementation of product and channel diversification strategies, which have contributed to the company's growth and profitability.

Conclusion

LIC's robust financial performance in H1 FY2026, characterized by significant growth in profit after tax, premium income, and improved profitability metrics, demonstrates the company's strong market position and effective business strategies. While facing some challenges in the individual business segment, LIC's focus on product diversification, cost optimization, and enhancing its distribution channels positions it well to capitalize on the growing insurance market in India and deliver value to its stakeholders.

The company's commitment to maintaining its market leadership, coupled with its efforts to diversify its product portfolio and improve operational efficiency, underscores its potential for sustained growth in the coming years.