LIC Reports 32% Surge in Q2 Net Profit, Reaches Rs 10,053 Crore

LIC of India , the country's largest insurer, has reported a significant boost in its financial performance for the September quarter. The company's focused efforts on strengthening core operations and improving investment returns have yielded impressive results.

Financial Highlights

Metric	Q2 FY24	Q2 FY23	YoY Change
Net Profit	10,053.00	7,621.00	+32.00%
Total Income	2,39,614.00	2,29,620.00	+4.35%
Net Premium Income	1,26,000.00	1,19,000.00	+5.50%
Solvency Ratio	2.13%	1.98%	+0.15 percentage points

Key Factors Driving Growth

LIC's impressive performance can be attributed to several strategic initiatives:

Core Business Focus: The company has concentrated on strengthening its fundamental business operations.
Enhanced Investment Returns: Improved returns on investments have contributed to the profit surge.
Expense Management: Tighter control over expenses has helped boost the bottom line.
GST Benefit Pass-through: LIC has transferred the entire GST benefit to policyholders, making policies more affordable and potentially driving future growth.

Management Insights

CEO R Doraiswamy expressed satisfaction with the company's performance, highlighting the success of their focused approach. He emphasized the positive impact of improved investment returns and effective expense management on the overall results.

Future Outlook

Looking ahead, LIC is positioned for continued growth:

Cost Rationalization: The company remains committed to optimizing its cost structure.
Product Innovation: New product launches are planned to meet evolving customer expectations.
Retirement Focus: LIC is targeting the growing trend of individuals building retirement corpus through tailored offerings.

The company anticipates that the GST benefit pass-through may drive topline growth in the second half of the fiscal year, potentially making their policies more attractive to customers.

As LIC continues to adapt to market dynamics and customer needs, it remains a significant player in India's insurance sector, demonstrating resilience and growth in a competitive landscape.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+3.13%	+3.29%	+1.29%	+17.58%	-0.60%	+5.59%

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

Metric	Performance
Total premium income	Grew by 5.14% to Rs 2,45,680 crore
Individual non-par Annualized Premium Equivalent (APE)	Surged by 30.47% to Rs 6,234 crore
Value of New Business (VNB)	Increased by 12.30% to Rs 5,111 crore
VNB margin	Expanded by 140 basis points to 17.6%
Assets Under Management (AUM)	Rose by 3.31% to Rs 57.23 lakh crore

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.