NewsEarningsLIC Reports 31% Surge in Q2 Consolidated Net Profit, Driven by Strong Premium GrowthLIC Reports 31% Surge in Q2 Consolidated Net Profit, Driven by Strong Premium Growth
LIC's Q2 FY26 consolidated net profit increased 31% to Rs 10,098.00 crore. Net premium income grew 5.5% to Rs 1,26,930.00 crore. Value of New Business rose 12.30% to Rs 5,111.00 crore for H1 FY26, with VNB margin expanding to 17.6%. LIC maintains market leadership with 59.41% overall market share in First Year Premium Income. The company improved its product mix with non-par APE share increasing to 36.31% and expanded distribution channels. Operational efficiency improved with a decrease in expense ratio and growth in Assets Under Management.
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Life Insurance Corporation of India (LIC), the country's largest insurer, has reported a robust financial performance for the second quarter of fiscal year 2025-26, with a significant increase in consolidated net profit and premium income.
Key Financial Highlights
- Consolidated net profit jumped 31% year-on-year to Rs 10,098.00 crore in Q2 FY26
- Net premium income grew 5.5% to Rs 1,26,930.00 crore
- Total income, including investment income, rose to Rs 2,40,454.00 crore
- Value of New Business (VNB) increased by 12.30% to Rs 5,111.00 crore for H1 FY26
- VNB margin expanded by 140 basis points to 17.6% in H1 FY26
Premium Growth and Market Share
LIC continues to dominate the Indian life insurance market, maintaining its leadership position 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 market share stood at 37.21% in the individual business segment and 72.74% in the group business segment.
Business Mix and Channel Diversification
The insurer has made significant strides in diversifying its product mix and distribution channels:
- Non-Par Annual Premium Equivalent (APE) share within individual business increased to 36.31% in H1 FY26, up from 26.31% in H1 FY25
- Bancassurance and alternate channels' share of Individual New Business Premium rose to 7.12% in H1 FY26, from 4.10% in the previous year
Operational Efficiency
LIC has shown improvements in operational efficiency:
- Overall expense ratio decreased by 146 basis points to 11.28% for H1 FY26
- Assets Under Management (AUM) grew by 3.31% year-on-year to Rs 57.23 lakh crore
- Solvency ratio improved to 2.13 from 1.98 in the previous year
Management Commentary
Shri R Doraiswamy, CEO & MD of LIC, expressed optimism about the recent GST changes 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."
He further added, "As the leader of the life insurance industry in India, we are aware of our responsibility to enhance both insurance penetration and density and continue to focus our efforts and channel our energies into achieving 'Insurance for All by 2047'."
Outlook
With its strong market position, improving operational efficiency, and focus on product and channel diversification, LIC appears well-positioned to capitalize on the growing Indian insurance market. The company's efforts to optimize costs and expand its VNB margin indicate a strategic approach to enhancing profitability while maintaining market leadership.
Investors and stakeholders will likely keep a close eye on LIC's continued progress in diversifying its business mix and improving its VNB margins in the coming quarters.
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