MUMBAI: Life Insurance Corporation of India (LIC) on Thursday reported a 20% year-on-year increase in consolidated net profit to Rs 12,115 crore for the quarter ended September 2026 (Q2 FY27), driven by growth in premium collections and an improvement in profitability of new business.
The country’s largest insurer had posted a consolidated net profit of Rs 10,098 crore in the corresponding quarter of the previous year (Q2 FY26).
On a standalone basis, net profit rose 20.1% to Rs 12,076 crore from Rs 10,053 crore a year ago. LIC’s net premium income rose 16.2% year-on-year to Rs 1.47 lakh crore during the quarter, compared with Rs 1.27 lakh crore a year earlier.
The growth was largely driven by single premium income, which surged 34.5% to Rs 68,425 crore from Rs 50,882 crore. Renewal premium income increased 5% to Rs 68,718 crore. However, first-year premium income declined 4% to Rs 10,484 crore.
Group business premium income grew 31% to Rs 61,760 crore, while individual premium income grew 8% to Rs 85,259 crore.
A key highlight was the Value of New Business (VNB). On a standalone basis, VNB rose 17.1% to Rs 3,710 crore, while net VNB margin expanded 470 basis points to 22.3% from 17.6% in the year-ago period, driven by growth in non-participating savings products and pure term insurance.
For the first half of FY27, VNB increased 34% to Rs 6,846 crore, and VNB margin expanded 470 bps to 22.3%.
LIC’s assets under management stood at Rs 59.60 lakh crore as of September 30, 2026, up 4.16% from Rs 57.23 lakh crore a year ago. Solvency ratio stood at 2.35, comfortably above the regulatory requirement of 1.50.
The Board has declared a first interim dividend of Rs 8 per equity share (160%) for FY 2026-27. November 12, 2026 has been fixed as the record date.
LIC continued to be the market leader with a 58.77% share of first-year premium income for the half-year ended September 30, 2026.
R Doraiswamy, CEO & MD, LIC, said the non-par APE share of individual business for H1 FY27 is 34.03%, in line with the strategy of maintaining one-third of individual APE from non-par products.
